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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

- Proprietary Information -

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


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


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


PAGE 6

SALES BY SEGMENT – FY2014

Total Sales = $2.0 Billion

Aerospace

$1.1 billion

Energy

$917 million


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


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


PAGE

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…..


PAGE

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


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


PAGE

Lean implementation

Supply chain integration

Value-differentiated

technology

Process Innovation

12

IMPROVING PROFITABILITY


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


WOODWARDENERGY

PAGE 15

ENERGY MARKET DRIVERS


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


PAGE

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


PAGE

Industrial Gas Turbines

Small

Aero

Large

Recip Engines

Lg Diesel / Gas

Sm Diesel / Gas

Steam Turbines

Compressors

KEY ENERGY MARKET LEADERS

18 - Proprietary Information -

PAGE - Proprietary Information -19

ENERGY APPLICATIONS

Power Generation

Mined Resources

Extraction

Processing

Distribution

Marine Transportation

Compression

Wind Renewable

Utilization-CNG/LNGCompression

Power Generation

Processing


ENERGY VALUE STREAM

PAGE

SOLUTIONS FOR GAS TURBINES

MicroNet Plus

Atlas II

SERVICES

G

Electronic

Control


PAGE - Proprietary Information -

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


PAGE

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


NATURAL GASUTILIZATION


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



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


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


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



R&D VALIDATION CAPABILITIES

Engine System Test Rig

High Flow Test System

Engine System Test Center

Combustion Test Center

MARGINEXPANSION


LEAN DEPLOYMENT

Lean mixed-model flow• Low volume / high mix

• Productivity and velocity

Process innovation• Semi-automation

• Quality control

• Error proofing

Leader/member training


Capacity for growth

Enabling Lean - designed from the inside out

37

FACILITY INVESTMENTS

Lincoln Campus – Fort Collins, CO Technology Center – Windsor, CO


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


WOODWARDAEROSPACE


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


LIFE OF PROGRAM VALUE MODEL

Investment

Cycle

Return

Cycle

A320

737MAX/A350

Passport 20 &

Silvercrest/E2/

C Series

787/747-8

R&D$

Expensed


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%


PAGE

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%


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


PAGE 47

COMMERCIAL TRANSPORT DELIVERIES

20101100 Aircraft

Delivered

20201930 Aircraft

Forecast


PAGE 48

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


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


PAGE

Evolved from

components

provider to total

systems supplier

Products line

grew from internal

development and

acquisitions

50

WOODWARD INTEGRATED PROPULSION SYSTEMS


PAGE

WOODWARD MOTION CONTROL SYSTEMS


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


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



PAGE

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


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



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%


PAGE

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



PAVING THEPATH TO GROWTH

PAGE

Integrated propulsion

systems

Flight deck controls

Electromechanical and

hydraulic actuation

PRODUCT PORTFOLIO


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


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


PAGE

Gulfstream G500 and G600

• PurePower PW800F engine content

• Airframe content

Boeing 777X TRAS

• TRAS

More to come…

62

STILL WINNING…..


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


PAGE

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


PAGE

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



Initial occupancy early 2015

67

ROCK CUT CAMPUS


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


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


PAGE

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


PAGE

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


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


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


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


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


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


PAGE

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


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



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


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$


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


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$


Documents

CLEAR PATH TO GROWTH - woodward.comwoodward.com/uploadedFiles/Investor_Relations/PDFs/FY15 Investor... · Advanced Air/Fuel Metering Technologies Advanced Control Technologies n n