2015

SUSTAINABILITY
REPORT
OUR COMMITMENT
TO SUSTAINABILITY
Woodward’s dedication to sustainability and corporate social
responsibility is fundamental to our identity. From our beginnings in 1870
with the invention of a speed control for waterwheels, Woodward has
grown into a company that sets the global standard for energy control
and optimization, providing sustainable solutions that improve efficiency
and lower emissions. Woodward applies the three interdependent pillars
of sustainability—environmental stewardship, social responsibility,
and structure and processes—as guiding principles for the promotion
of responsible progress. Our commitment to sustainability as part of
responsible progress is encapsulated in the message that is at the core
of our corporate brand: Always innovating for a better future.

ABOUT WOODWARD
AND THIS REPORT
Woodward is a publicly owned company traded on NASDAQ under the
symbol “WWD”. We serve the aerospace, energy, and industrial markets
across the world and have a strong presence in North America, Europe,
South America, and Asia. Our members are key to our operations; they
have created our present success and will drive our continued success
in the future. Woodward employs approximately 7,500 people worldwide,
6,800 of whom are full-time members.

Woodward’s leadership in energy control and optimization solutions

is built on a foundation of strategic vision, quality performance, and
core values. Woodward focuses on controlling energy by integrating
components into systems that yield improved performance, reliability,
emissions, and fuel flexibility and efficiency to help ensure a better
environment.

This is our first Sustainability Report and covers the 2012-2014 period.
For questions related to the content of this Report, please contact the
following Woodward members:

Chris Fawzy, General Counsel, Corporate Vice President

& Chief Compliance Officer
chris.fawzy@woodward.com

Craig Blackburn, Ethics & Compliance Director

craig.blackburn@woodward.com

You can also learn more about Woodward in our Annual Report on
Form 10-K and our proxy statement, both of which can be found at
www.woodward.com/financialreports.aspx.
FROM OUR CEO
On behalf of Woodward’s Board of Directors and management team, I am pleased to introduce our first Sustainability Report.
Woodward’s long-standing commitment to sustainability is reflected in the Woodward Constitution—first published in 1971—which
defines our business philosophy, establishes our values and principles, and describes our business purpose:

Woodward enhances the global quality of life and sustainability by

optimizing energy use through improved efficiency and lower emissions.
Living up to the Woodward Constitution is critical to the achievement of our business goals and to our long-term success. Among
other things, this means we must make continuing investments in our employees (who we call “members”), products, processes,
and facilities. In this Report, we proudly highlight these investments, including the following:

Innovative New Facilities: We are building new facilities that we
believe will have a significant favorable impact on our products,
processes, people and communities. These facilities are
being planned and constructed applying the latest concepts in
resource-optimization and will bring innovative new processes
and technologies to our manufacturing operations. Our new
facilities are being designed to promote continuous member
engagement and collaboration through open concept work
areas. The grounds around our new facilities will provide a
“campus” feel, with green space, tables and benches. Woodward
has also engaged local communities in the planning and layout
of our facilities and grounds to provide lasting benefits to these
communities.
Research and Development: Reflecting our commitment to
delivering “lasting solutions to energy control,” we continue to
invest in research and development, taking advantage of new
and alternative energy sources and enhancing the performance
of our products. We believe our R&D investments will keep our
products well positioned in the market well into the future,
benefiting all of our stakeholders.
Investing in Our Members: At Woodward, we recognize that
investing in our members is critical to member engagement
and essential to our success. Our member investments include
establishing Woodward University to accelerate and expand
our training and development capabilities; offering members
tuition assistance and providing training in “lean” processes
and thinking. Our “Total Rewards” strategy recognizes
and rewards performance by providing competitive total
compensation, career development, quality work content and
recognition programs, while continuing to offer our members
industry-leading benefits.
Maintaining Our Leadership in Governance: Through a number
of governance processes, some of which are discussed in more
detail in this Report, we monitor our business activities and
ensure our members understand and continuously work to
achieve our corporate priorities. Our annual drumbeat includes
a cadence for key governance processes such as strategic
planning, periodic reporting, financial planning, and member
development and succession planning. The processes provide
senior leadership, the Board of Directors, and our shareholders
with key insights into our business that foster informed decision-
making. “Sustainability Reporting” is now incorporated in our
annual cadence, and I look forward to bringing you updates on
our initiatives and performance in future reports.

Additional examples of our commitment to sustainability, and to “living” the Woodward

Constitution, appear throughout this document, our first sustainability report. We encourage
you to read it and we look forward to receiving your feedback.

Sincerely,

Thomas A. Gendron
Chairman of the Board, Chief Executive Officer and President

1
 THE WOODWARD CONSTITUTION 3
PILLAR I—OUR WORLD:
ENVIRONMENTAL STEWARDSHIP 5
Woodward Products—Clean,
Efficient Energy for a Better Tomorrow 5
Aerospace 5
Energy 6
Woodward Processes and Facilities—
Environmental Stewardship Starts at Home 6
Company-Wide Stewardship Activities 7
Facility/Local Initiatives 8
Health and Safety 9
Our New Facilities 10

PILLAR II—CULTURE AND COMMUNITY:

SOCIAL RESPONSIBILITY 12
Globally 12
Conflict Minerals 12
Anti-Corruption 12
Locally 12
Member Overview 14
Investing in Our Members 14
Member Inclusion-Diversity at Woodward 15
Working with Local Government 15
Community Outreach and Charitable Giving 16

PILLAR III—GOVERNANCE:
STRUCTURE AND PROCESSES 19
Board of Directors 19
Governance and Related
Processes and Practices 20
Enterprise Risk Management 20
Ethics Program 21
Member Engagement and Relations 21
Global Supply Chain and Supplier Diversity 22
Key Business Processes 22
WOODWARD TODAY AND TOMORROW 24

2 2015 Sustainability Report

 OUR VALUES
AND PRINCIPLES

Woodward member from

Sofia, Bulgaria

The Woodward Constitution is a living document that sets forth our values
and principles: respect for the individual, integrity and ethics, accountability,
teamwork, customer satisfaction, initiative and results driven. It establishes
our commitment to our stakeholders: our shareholders, customers, members,
suppliers and communities in which we operate. These stakeholders are
the people and institutions to whom we are accountable and who drive our
continued success.

You can find the complete text of the Constitution on our website, at
http://woodward.com/AboutWoodward.aspx. We encourage you to
read it for a deeper understanding of who we are.
 Woodward member from
Campinas, Brazil

OUR THREE PILLARS OF SUSTAINABILITY

Woodward’s commitment to sustainability rests on three pillars:

Pillar I Pillar II Pillar III

OUR WORLD: CULTURE AND GOVERNANCE:
ENVIRONMENTAL COMMUNITY: SOCIAL STRUCTURE
STEWARDSHIP RESPONSIBILITY AND PROCESSES

The following sections of this Report discuss these three pillars in detail.
PILLAR I—OUR WORLD:
ENVIRONMENTAL STEWARDSHIP
Woodward’s commitment to environmental stewardship begins with our products and facilities. Our products help our customers
increase energy efficiency and lower energy consumption, and our facilities are environmentally friendly.

Woodward Products
Clean, Efficient Energy for a Better Tomorrow
We specialize in providing energy control and optimization solutions for the aerospace and energy markets.

Aerospace
Woodward’s aerospace products respond to ever-growing needs for improved fuel efficiency, emission control and reliability,
as well as reduced cost and weight. As the world aircraft fleet is projected to double in size—with as many as 20,000 new planes
by 2030—we are positioned to play an essential role in the environmentally conscious growth of the industry. By 2018, every
production aircraft program will be delivered with updated fuel-efficient engines and either all-new or upgraded airframes.
Woodward products will play a significant role in over 90% of those new aircraft deliveries.

Woodward technologies are used in a wide variety of civil aircraft, ranging from commercial transport to helicopters and business
jets, as well as in military applications, including rotorcraft, transport, fighters, guided weapons, and other defense systems. Our
key product focus areas for the aerospace industry are:

Fuel system—From fuel pressurization to precision metering and splitting of fuel flow to optimize combustion control, Woodward
fuel systems contribute to the 15% improvement in fuel burn realized by the latest generation of commercial aircraft. These new
aircraft are contributing to the continued reduction in the rate of fuel consumption by the entire airline industry, even as passenger
traffic continues to grow.

Actuation systems—Actuation components and systems

position specific parts of the engine to optimize air flows

15%
IMPROVEMENT
IN FUEL
and to control the cooling and pressures of various parts
of the engine. The result is better fuel burn and lower NOx
emissions.

Combustion systems—As engine temperatures become hotter,

EFFICIENCY
greater demands are put on the combustors to burn “clean”—to
emit lower levels of greenhouse gases. Woodward fuel nozzle
and other combustion component designs have responded with
higher temperature materials and innovative cooling approaches
in support of new combustor designs.

Nacelle actuation—Thrust reverser actuation systems and other

utility actuation for streamlined nacelles (which wrap around
the turbofan engines) support the reduction of aerodynamic drag,
contributing to overall aircraft efficiency.

Flight deck controls—Throttles, rudder pedals and other flight deck controls provide the interface between the pilot and the
aircraft’s surfaces. The pilot’s actions provide safe, responsive and optimal performance of the aircraft in flight modes from take-
off to high-altitude cruise, to approach and landing.

Motion controls—At the ‘receiving end’ of the pilot inputs are the electromechanical and hydraulic motion controls which reliably
position flaps, rudders and other flight control surfaces, and utility actuation technologies to ensure safety, optimize performance
and improve efficiency.

5
 Energy
Woodward optimizes energy efficiency and lowers emissions by creating control solutions for equipment that uses or produces
conventional or renewable energy sources. Our solutions are used in power generation, energy extraction, distribution and
storage, and other industries. Our products help reduce energy use and its effects on global climate change. Our products
promote fuel/source flexibility in the production of electricity, and enhance controls over electricity infrastructure that promote
more efficient management and delivery of electrical energy, contributing overall to environmentally focused solutions to
address energy needs around the world.

Our products help to reduce energy use

and its effects on global climate change.
Our contributions to maximizing both traditional and renewable forms of energy fall into three broad categories:

Combustion Control—Controlling and improving combustion is critical to promoting the efficient use of gaseous and liquid fuels,
and minimizing emissions. Our products assist in enhancing initial combustion characteristics, improving engine performance
and durability, and enabling our customers to meet mandated emission targets for their existing and future products.

Air, Fuel, and Exhaust Control—Our fluid control solutions help to optimize energy usage and help our customers meet their
emissions targets. In addition, these solutions can be applied to new forms of clean energy, including methane, landfill gas,
and coal gas.

Electrical Controls and Software—Woodward’s efforts to optimize resources and promote environmentally friendly technology
extend to electrical controls and software technology. This technology is specifically focused on improving the generation and
regulation of energy and can be used in alternative fuel and hybrid engine systems as well as conventional systems.

Woodward Processes and

Facilities—Environmental
Stewardship Starts at Home
Our commitment to environmental stewardship is not limited to
our products—it’s also evident in our facilities. Woodward locations
around the world strive for exemplary environmental performance
and compliance, routinely undertaking significant efforts to reduce the
company’s environmental footprint and achieve ecologically focused
goals. New site development and expansions promote the application
of sustainable practices to our operations, and reflect our company’s
strong commitment to sustainable long-term growth. As we continue to
grow, our company’s new facilities and buildings are carefully planned
and constructed, using ideas and technology that foster sustainability.
Our quest for continued environmental excellence is supported
by Woodward members, who strive to ensure that facilities and
operations are in full compliance with local, federal, and international
environmental laws.

Woodward’s corporate goals include meeting ISO 14001 (Environmental

Management System) standards, encouraging our members and
suppliers to apply best management practices to environmental, health
and safety, and maintaining strong relationships with local and national
regulatory agencies in order to responsibly contribute to greener
practices. Individual facilities are encouraged to expand upon these
Woodward
member from corporate goals and create their own supplemental guidelines and
Aken, Germany objectives. Some examples of our company-wide and local initiatives
include:

6 2015 Sustainability Report

Company-Wide Stewardship Activities
Recycling solid wastes—All our facilities in the United States have implemented single stream recycling initiatives. These programs
encourage our members to recycle paper, metal, glass, light bulbs, batteries, wood (from crates and pallets) and even printed
circuit boards.

Recycling used oil and fuel—We have significantly improved the disposal process for used oil and fuels in some locations by finding
a local purchaser to recycle and/or reuse these materials, rather than having them removed by an external waste disposal service.
Other facilities are working to implement in-house oil recovery systems. These projects seek to ensure that used oil and fuels
(non-hazardous) are recycled or properly disposed of to protect the environment.

Packaging reductions—Although it is critical to protect our products and shipments, industrial packaging can generate significant
waste. We are actively engaged with our suppliers and customers to reduce overall packaging bulk and create return, reuse, and
recycle programs for cardboard boxes, foam dividers, and plastic packaging materials.

Collaboration with local utilities providers—Many of our offices and facilities take the initiative to work with their respective local
utilities to ensure that our energy needs do not coincide with peak electrical demand. One example is how our facilities work with
local utilities to schedule equipment with higher energy requirements to operate during off-peak periods. In addition, our facilities
have real-time communication with electrical providers to enable our plants to immediately respond to requests to reduce usage
to avoid over-demand on local electrical grids.

Environmentally focused partnerships—Woodward sites across the U.S. work with local universities, businesses, non-profit
groups, and regulatory bodies to find innovative approaches to accomplish forward-thinking and eco-friendly goals. For example,
in Fort Collins, CO, we are partnering with local groups to create a net-zero energy district, “Fort Zed”, which is an area of the
city that generates as much energy as it consumes. Woodward also plays a key role in providing control systems for biofuel and
multi-fuel applications to businesses in the area. Working with the city of Fort Collins and Colorado State University, we support
multi-fuel research and development.

Solar and Other Energy Savings—The installation of solar panels and tankless water heaters has offset some plants’ needs for
boilers during the summer. Traditional boiler thermostats have been replaced with automatic temperature rollbacks in order
to reduce energy during non-working hours, resulting in a significant annual savings of natural gas. Sunlight harvesting and
occupancy-sensitive lights have reduced electrical consumption from interior lighting by up to 34% annually. Inefficient light bulbs
have been replaced by modern bulbs, resulting in a savings of 1000kWh each month. All facilities have also installed energy
efficient appliances in offices and cafeterias to help reduce our environmental footprint.

7
 Facility/Local Initiatives
Our individual facilities have also taken significant steps toward environmental stewardship. Some examples include:

Loves Park, Illinois—Translucent panels in our new Rock Cut Campus filter sunlight for optimal brightness and provide insulation
for maximum efficiency. Ceiling lights sense natural sunlight levels and adjust to reduce the use of electricity.

Niles, Illinois—As part of the facility renovation, new processes were implemented to ensure that water used in industrial process is
not discharged to municipal sanitary systems. This water is pumped to a holding tank, Ph-adjusted, and then sent to an evaporator
to boil off the water. Residue left in the holding tank is collected and shipped to an appropriate disposal site. A similar process is
used for water-soluble machine coolant, and even for the water collected in floor-scrubbing machines. These processes further
ensure that oil or other industrial materials collected during our manufacturing and cleaning process are kept out of sanitary
drains.

Fort Collins, Colorado—A closed loop cooling system for the non-contact cooling processes was installed, reducing water usage
from an average of approximately 15 gallons per minute to only 0.2 gallons per minute. Our commitment to energy efficiency was
even extended to the traditional public display of lights and decorations during the holiday season—a long-standing community
tradition for this facility. After replacing 49,000 incandescent Christmas bulbs with LEDs, the display’s electricity consumption
dropped by 93 percent.

Aken, Germany—In 2014, our Aken facility implemented a new energy management system. Recent improvements in the facility
include the installation of a new roof and insulation, as well as new gas heating systems for the office and production buildings.
These improvements were subsidized in part by the German government.

Greenville, South Carolina—In 2009 a solvent recycler was installed at the facility, reducing the volume of Acetone used at the
facility from approximately 1,500 gallons per year to approximately 500 gallons per year. The installation of a second solvent
recycler in 2014 maintained the volume of disposed Acetone to less than 500 gallons per year despite a significant increase in
production. In addition, the facility has installed and is evaluating the use of an aqueous based cleaner to determine the feasibility
of replacing solvent-based cleaners with more environmentally friendly water-based cleaners.

Stuttgart, Germany—Over 90% of this facility’s electricity is generated from alternative sources of energy rather than fossil fuels,
including 33% from wind and solar technology. This site is also launching a new electricity reduction program to further reduce its
overall environmental footprint.

Gurgoan, India—To use both energy and financial resources more efficiently, the Gurgoan office recently moved to a smaller
facility and cut its energy consumption by 75%. The office is also currently seeking alternative fuel sources for its daily activities.

Campinas, Brazil—In addition to spending on new environmental protection measures, this site applied efficient eco-friendly
strategies to increase production levels while still decreasing the site’s overall electricity and oil consumption.

8 2015 Sustainability Report

Health and Safety
Woodward continuously monitors compliance with federal, state, local
and international laws concerning environmental and occupational
health and safety. We seek to prevent and significantly mitigate
potential negative impacts of hazardous and other regulated materials
that remain necessary to manufacturing our products. In many cases,
we surpass regulatory requirements to protect the welfare of our
members, their families, and our communities and ecological systems.

To provide for the health and safety of our members, we have established
a safety management system to eliminate or mitigate health and
safety risks and prevent hazardous or unsafe conditions that may
arise in connection with manufacturing operations and work-related
activities. This system includes evaluating production processes,
monitoring production operations, and providing information sessions
and training workshops. The safety management system is designed
to make sure that safety equipment is properly located; that members
are trained to use equipment properly; and that other measures are
implemented to promote a healthy and safe environment. Under this
system, our leadership and members work together to proactively
identify, report, correct, and prevent hazardous conditions. Safety data
is tracked, measured and reported to senior leadership on a regular
basis, and a continued measurable safe working environment is a
specific company-wide goal.

We also have developed the Woodward Preparedness Prevention and

Contingency Emergency Plan Manual as an extension of our safety
management system. This manual is an important resource that
details emergency response procedures to minimize potential hazards
to people or the environment.

Woodward member from

Krakow, Poland

9
 Our New Facilities
Our new facilities have been designed to provide a more flexible, collaborative, and environmentally friendly work atmosphere.
Open spaces and the co-location of the offices, product development laboratories, and production areas encourage member
engagement, collaboration, and the quick resolution of issues. Workstations include desks that allow members the flexibility to
sit or stand, and ergonomic furniture (much of which is constructed from recycled materials) further complements the various
work areas.

We’ve separately discussed our environmental stewardship activities and our health and safety initiatives. However, environmental,
health and safety issues intersect and call for a holistic approach. The best examples we can give of Woodward’s approach to
these “EH&S” matters are what we’ve done at our new facilities; some of them are detailed below.

Rock Cut Campus in Loves Park, IL

To accommodate future production needs and new programs, Woodward is constructing a new campus on a 70-acre property in
Loves Park, IL. This campus will include 440,000 square feet of production space and offices. Meticulously planned to fit within its
local environment, the campus landscaping emphasizes native trees, prairie grasses, wildflowers, and “savannahs”—all planted
using the original topsoil from the site—in order to reduce water inputs. Storm water runoff from roofs, parking areas, and lawn
areas will be collected in a retention pond that will serve as the main source of irrigation for the site. The campus will include a
pathway linking the site to bike paths that run through parks and natural areas in the community.

The Rock Cut Campus has been designed to capture natural light through the installation of skylights, light wells, and translucent
panels. Electrical lighting systems will have sensors that adjust the amount of electrical lighting based on the amount of natural
light available. In addition to daylight harvesting and photovoltaic panels (providing 30kW of renewable energy to the facility), the
building also employs programmable and occupancy-sensitive lighting systems and high efficiency LED lights to further reduce
energy consumption.

Open plant layout for manufacturing

and assembly & test at our new facility
in Niles, IL.

10 2015 Sustainability Report

Energy efficiency and recovery is paramount for other components of the site. Air handling units will reclaim heat from exhausted
air to help warm intakes from the outdoors, and the ductwork in manufacturing areas include thermostatically controlled dampers
to sense changes and adjust air flow as needed. Heat exchangers as well as chilled and hot water systems have been streamlined
and programmed to adjust in response to outdoor temperatures to reduce energy demand, and new condensing boilers are over
90% efficient.

Niles, IL
Woodward has renovated an existing building in Niles, IL, and we are transitioning manufacturing and offices from older facilities
in nearby Skokie. The building was finished with low-VOC paint and carpet that contains recycled materials. The renovated Niles
facility maintains large-scale recycling programs in all areas, and 98% of the materials removed from the original building were
reused and/or recycled in the renovation. Motion-sensitive lighting systems and new lighting fixtures and technologies help to
lower the site’s electrical demands and utilize resources more effectively.

Lincoln Campus in Fort Collins, CO

To accommodate increased demand and provide for future growth, Woodward is constructing a new campus that will increase
production capacity for our Industrial Turbomachinery Systems business and provide space for our global headquarters.

The campus will be patterned to match the local environmental landscape, and Woodward is replanting trees and applying
techniques to reduce water usage in different areas of the site. To preserve the surrounding natural areas and maintain our
commitment to the community, we transferred property to the city of Fort Collins for green space, walking paths and picnic areas,
as well as habitat restoration and preservation.

Trees and wood removed during the initial construction will be reconditioned for stairwells and décor, and sustainable workplace
furniture will be used throughout the facility. The buildings will utilize energy efficient appliances, equipment, and lighting
systems—including automatic zone light dimming for unoccupied spaces. Finally, to promote awareness of conservation efforts,
dashboards will be mounted throughout the buildings to display real-time electricity and water usage to members.

11
 PILLAR II—CULTURE AND COMMUNITY:
SOCIAL RESPONSIBILITY
Woodward is committed to enhancing the communities that shape the lives and livelihoods of our members, our customers,
and our shareholders. This section articulates how social responsibility guides our efforts to contribute to and strengthen our
local and global communities.

Globally
Many of Woodward’s products go to customers/locations outside of the United States. With this global presence, we recognize
that our commitment to sustainability must extend beyond our products and our facilities. Therefore, we have implemented
policies and practices to promote global human and labor rights. We extend this commitment to all stakeholders—including
our suppliers; Woodward is determined to partner with suppliers who are similarly dedicated to conducting business in a
socially responsible manner.

Conflict Minerals
We are steadfast in our commitment to not use banned or disputed materials in our products. In 2012, we established an
internal team to guide conflict minerals engagement with our suppliers, and we are implementing processes to promote
compliance with all conflict mineral regulations. Our processes include comprehensive risk assessment, third-party audits
(if and when required), and periodic reporting regarding findings related to conflict minerals in compliance with U.S. and
international standards.

Anti-Corruption
Woodward is also committed to preventing corrupt and unfair business practices, and we have established policies and
processes to ensure compliance with the U.S. Foreign Corrupt Practices Act and the Organization for Economic Cooperation
and Development’s Anti-Bribery Convention. We also adhere to a zero tolerance policy regarding any incidents that fail to
comply with the anti-corruption principles.

Locally
At Woodward, we believe our commitment to sustainability must encompass our members and our local communities.
Empowering our members to develop new skills for professional advancement within a safe and healthy workplace helps
to create stronger, more vibrant communities. We believe that, as a result of our commitment to education and career
development, Woodward members are passionate about using their knowledge and talents to give back to their communities
through outreach programs and charitable giving.

12 2015 Sustainability Report

 Woodward is committed to enhancing the communities
that shape the lives and livelihoods of our members, our
customers, and our shareholders.
 Member Overview
Our members are key to our operations; they have created our present success and will be responsible for our continued success
in the future. Woodward employs approximately 7,500 people worldwide, 6,800 of whom are full-time members.

Investing in Our Members

We consistently invest in our members, not only through outstanding health and benefit plans, but also with competitive total
compensation with incentives aligned for all members and leaders across the organization. More importantly, we provide our
members with significant opportunities for advancement of their skills and capabilities. We provide a range of programs to develop
our members’ technical knowledge and professional skills and to foster the interpersonal skills that promote a positive and
collaborative work environment. Our flexible career structure and tuition assistance program enable members to develop and
pursue opportunities for cross-functional and vertical advancement.

Partnering with local universities and trade schools, Woodward also maintains structured internship programs to provide
professional development opportunities for individuals. In 2014, 100 people participated in these internship programs. Approximately
one-third of the graduating interns joined as full-time employees, and most non-graduating participants’ internships were renewed
for the following year.

By providing members with meaningful work and strong development opportunities, we strive to be the “Employer of Choice” for
our existing and prospective members.

Woodward member from

Niles, IL

Provide members
with competitive total
compensation, growth,
and development
opportunities

14 2015 Sustainability Report

Member Inclusion—Diversity at Woodward
At Woodward, we value the contributions of each member, and we recognize that those contributions are maximized when we are
able to leverage the diverse backgrounds, education, culture, and experiences of all of our members. In an increasingly competitive
global market, we embrace and value the individual differences and extraordinary talents of our members, and we are committed
to providing a professional environment free of discrimination, where all members are treated with dignity, respect and courtesy.

While we believe our concept of inclusion extends beyond traditional definitions of equal opportunity, we maintain equal opportunity
employment and affirmative action policies that reflect our tradition of fair and consistent treatment for all members. In compliance
with federal, state, and local laws, we make it a company priority to provide all people with the same opportunities for success.
Every officer, leader and member shares responsibility for the effectiveness of these policies and for ensuring equitable treatment
and opportunities for all members.

We value the contributions of each member

Our Equal Opportunity Employment policy commits us to provide the same employment opportunities to all qualified members
and applicants without regard to race, color, religion, age, gender, sexual orientation, gender identity, national origin, disability, or
veteran status, among other protected classes. This policy is actively implemented in every aspect of employment and is designed
to ensure that members are evaluated solely on their merits and contributions to the Company. As federal contractors, Woodward
also maintains Affirmative Action Programs for women, minorities, protected veterans and individuals with disabilities.

The Company also strives to maintain a harassment-free workplace, supported by a streamlined anonymous complaint process
as well as our zero-tolerance policy regarding retaliation for any grievances filed. In support of this policy, in 2014 U.S.-based
members were given Civil Treatment training, with leaders participating in Civil Treatment for Leaders.

Woodward provides a range of programs not only to develop technical knowledge and professional skills, but also to foster the
interpersonal skills that promote a positive and collaborative work environment. Our flexible career structure allows members to
pursue extra opportunities not only for vertical advancement, but also for horizontal cross-departmental training.

Working with Local Government

Recognizing the influence local government has on both our business and the communities in which we work, forging strong
relationships between Woodward and local governments has been invaluable to our continued environmental, social, and economic
progress. Woodward believes that we can establish mutually beneficial relationships that will ultimately add value to both our
business and the surrounding community. Some examples:

Recently, the city of Fort Collins, Colorado worked with Woodward to develop a comprehensive development
plan for its new Lincoln Campus. While revitalizing a dormant area within the city and providing benefits such
as improved transportation infrastructure and employment opportunities, Woodward was able to expand its
existing site. A similar mutually beneficial plan was developed for Woodward’s new facility in Loves Park, Illinois,
including funding for member training and investments in business development and public infrastructure.

Our facility in Kempen, Germany received a $1 million government grant in 2014 for research and development
of wind technology, as Germany continues to increase its production of renewable energy.

Our facility in Krakow, Poland has been established in a Special Economic Zone. This has resulted in Woodward
earning tax credits in the amount of approximately $8.6 million over the period from 2008 through 2014.

15
 Community Outreach and Charitable Giving
Woodward and our members partner with local organizations to better our communities and the lives of those living within them.
Every year, Woodward members devote thousands of hours to serving their communities and financially supporting charitable
entities of all types.

Woodward provides funding for philanthropic and non-profit programs through its various Community Outreach Committees.
For example, in 2014, individual members contributed a total of $300,000 to local chapters of the United Way, and the Company
contributed an additional $275,000. The Company also provides substantial support to the Woodward Charitable Trust, a separate
entity established in 1947 to support various needs in our local communities. The Trust contributes over $1 million annually
to worthy projects and causes including educational institutions, cultural activities, youth programs, workforce and economic
development, healthcare, and other initiatives that contribute to the vitality and betterment of the communities in which we
operate. In addition to Woodward’s annual financial contributions to the Trust ($200,000 in 2014), Woodward provides substantial
administrative and other support, including the participation of multiple current and former Woodward executives and other key
leaders on the board of trustees, in officer roles, and on site contribution committees existing at all our U.S. locations.

Through these and other mechanisms, we encourage all of our Woodward facilities to tailor their own community outreach activities
to fit the needs of their communities. Examples of our community support — which includes contributions from our members, the
Company, and the Trust — follow:

Colorado: Members at our Colorado facilities participate in a wide array of activities, including voter registration drives, holiday gift
campaigns for underprivileged children, Habitat for Humanity, recycling programs and numerous additional community activities.
In addition to our members’ volunteer activities, the Colorado Community Outreach Committee Grants financially supported 17
local organizations with a total of $136,000 in grants for 2014. Further, a $1 million donation was completed in 2014 to the Discovery
Center Museum in Fort Collins.

Illinois: Beyond a wide range of charitable and voluntary activities by our Loves Park and Rockford area members, 11 local non-
profits were awarded a total of $126,000 in 2014 with an additional $13,000 in small contributions to 46 charitable groups and
causes in the Community. In addition, $1 million was pledged (and $400,000 paid) to the Transform Rockford initiative and $300,000
was pledged (and $100,000 paid) to the establishment of Alpine Park of the Rockford Park District.

In Niles, members helped improve their community through fundraisers for important causes, blood drives, campaigns for
children’s toys, family picnics, fun-runs, and volunteering in local charitable organizations. These efforts included collecting and
packaging 78 boxes of food for a Feed My Starving Children event that provided 16,848 meals to 46 in-need children over the year,
and grants of $56,000 to 10 local organizations.

Krakow, Poland
member volunteers

16 2015 Sustainability Report

 Rockford, IL
United Way Committee

Zeeland, Michigan: Woodward members give both money and time to their community, including working with Habitat for Humanity,
partnering with the Red Cross to host blood drives, and participating in campaigns to provide school supplies and mittens for local
schoolchildren. Funding grants totaling $13,000 were made to various charitable organizations.

Greenville, South Carolina: $8,000 was donated to a number of local causes, in addition to members’ involvement in many charitable
activities throughout the year. Examples include participation in community wide events like Hands On Greenville, helping sponsor
a 5K race for cancer research, multiple food and blood drives, and donating and volunteering for a number of community initiatives
that support children in need.

California: In our Santa Clarita operation, community engagement includes a blood drive, programs to collect books, school
supplies, Thanksgiving food, and bottled water and toys for disadvantaged children. The Santa Clarita location also sponsors three
separate community fun-runs in order to advance worthy causes, and encourages members to become active in over a dozen other
volunteer events held by local groups. The local Community Outreach donated $38,000 to multiple worthy causes.

Community Outreach at the Duarte facility has included volunteering and raising funds for a variety of worthy causes, including
$18,000 in recent donations to educational and community causes. Our members have been active participants in other fundraising
activities such as a local Veteran’s Day Ceremony, gift campaigns during the holidays, and collecting jackets for the homeless and
school supplies for needy children.

Krakow, Poland: Our members in Krakow are excited about the variety of ways they are engaging in their local community. 2014
contributions from Woodward and our members to “Noble Box,” a national charitable initiative in Poland, totaled PLN 12,800
($3,400 USD). Members also collected toys and clothing for families in need, and initiated a program to donate teddy bears to
underprivileged children. Members also gave their individual time to rebuild fences and repair houses for families in need.

17
Woodward members from
Kempen, Germany

The Woodward Constitution would not be possible

without committed leadership that sets the
“tone at the top” in all we do.

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PILLAR III—
GOVERNANCE:
STRUCTURE AND
PROCESSES
Corporate governance plays an important role in balancing short
term and long term interests of our stakeholders and helps ensure
the sustainable growth and success of our company. Achieving these
goals and living up to the other principles of the Woodward Constitution
would not be possible without committed leadership that sets the
“tone at the top” in all we do. For that, we rely on Woodward’s Board
of Directors and our senior leadership. Our directors and executives
work together to establish, promote and achieve not only our strategic
objectives but also the principles that govern how we achieve those
objectives.

Board of Directors
Woodward’s Board of Directors is responsible for overseeing
management in operating the Company. Importantly, all of our
directors—with the exception of our Chief Executive Officer, Mr.
Gendron—are independent; that is, they have no relationships with
the Company that would be deemed to impair their judgment or their
ability to objectively oversee its operations.

In addition, in considering individuals to serve on the Board, its

Nominating and Governance Committee seeks directors who have
the highest professional and personal values and who possess other
skills and characteristics deemed necessary for Board service. These
include knowledge, experience, cultural background, including race,
gender and age; skills in areas critical to understanding the Company
and its business; and a commitment to enhancing shareholder value,
as well as the following:

• an understanding of the principal operational and financial

objectives, plans and strategies of the Company;

• an understanding of the results of operations and financial

condition of the Company;

• an understanding of the relative standing of the Company

in relation to its competitors; and

• leadership experience at the policy-making level in

business, government, education or public interest.

19
 Governance and Related Processes and Practices
In addition to having a substantially independent Board of Directors, Woodward follows leading practices in corporate governance.
The Board has three main Committees—Audit, Compensation, and Nominating and Governance—to facilitate in-depth review of
areas such as risk management and executive compensation. Each Committee has a formal Charter that details its composition
and responsibilities, in accordance with applicable laws and regulations.

The Company also benchmarks its governance processes and practices against those of its peer companies and others, and is
prepared to adopt new approaches to governance when warranted and appropriate for the Company. For example, in November
2014, the Board, on the recommendation of the Nominating and Governance Committee, amended the Company’s Bylaws and
Director Guidelines to institute a majority voting standard and a corresponding resignation policy for uncontested director elections.

To support the Board and its Committees, as well as senior leadership, Woodward has established business processes and activities
to ensure that the Board and senior leadership are informed about key risks and market trends, and that company resources are
appropriately positioned to meet current and future needs. These processes and practices include, but are not limited to:

Enterprise Risk Management

Woodward has established a robust enterprise risk management (ERM) process that promotes the awareness and mitigation of key
risks to shareholder value, as identified by executive leadership and the Board of Directors. The annual cadence for ERM includes
risk evaluation, incorporation of risk mitigation strategies as part of annual strategic planning, and reviews of risk assessments
twice each year. This practice allows our Board of Directors and senior leaders to establish/modify priorities and communicate, as
appropriate, any changes to our business groups and members.

“Key Risks to Shareholder Value” are divided into the following categories: 1) strategic and external factors, 2) growth, 3) financial,
4) operational functionality, and 5) legal compliance. Each of the company’s four business groups conducts independent evaluations
of these risks, and establishes appropriate strategies to effectively mitigate risk.

20 2015 Sustainability Report

Ethics Program
Woodward has an established ethics & compliance program, founded on a comprehensive ethics policy that includes annual
training for all members and a variety of means for members to raise and resolve questions and concerns, including an anonymous
help line—administered by a third party—where concerns can be reported. The ethics and compliance program is overseen by
the Business Conduct Oversight Committee, a committee of senior executives. An integral part of our commitment to integrity,
Woodward has also established specific policies and practices designed to ensure that business is conducted with the utmost
transparency and veracity. Careful oversight into international trade policies, as well as fair and ethical dealings with the U.S.
government and foreign government agencies, are also part of our continuous commitment to conduct business with integrity.

Internal Controls Over Financial Reporting

Woodward has established disclosure controls and procedures, such as a Quarterly and Annual Disclosure Committee (QADC) led
by a committee of senior executives across various businesses and functions. These controls are designed to ensure important
Company information is identified, properly evaluated, and elevated as appropriate to the Company’s management and Board of
Directors. This process helps ensure reliability in the preparation of our financial statements and in the full, accurate and timely
reporting as required under the securities regulations.

Member Engagement and Relations

Successful governance requires engagement between and within all levels of the organization. Our leaders and executive
management rely on our members and other stakeholders to help us establish and maintain effective communications and
focused governing strategies.

Woodward fosters member engagement through a bi-annual Member Engagement Survey that covers a broad spectrum of topics
such as compensation, job satisfaction, quality, safety, and career development. In 2014, 77% of Woodward members responded
to our Member Engagement Survey. This high rate of responses confirms our belief that members at all levels are truly engaged
in our business.

Local, state, and federal laws and regulations, as well as collective bargaining agreements, influence the relationships between
any employer and its employees. For our members in the United States who are part of collective bargaining arrangements,
Woodward site leaders have forged strong relationships by adhering to local employment laws and the letter and spirit of applicable
collective bargaining agreements, including notification periods for operational changes that may impact represented members.
Depending on the site location in the United States, our Company works with unionized workforce one to eight weeks ahead of any
modifications to standard procedures or operational protocols. In locations outside the United States, Woodward complies with
local labor laws and regulations, often working through a “work council” or other intermediary, or following other local practices
to appropriately resolve member issues.

Successful governance requires engagement

between and within all levels of the organization.

Woodward members in
Makuhari, Japan

21
 Global Supply Chain and Supplier Diversity
Our long-term success requires us to have a reliable and diverse supplier base. To ensure that our Global Supply Chain (“GSC”)
organization is integrated and well positioned to support our businesses, we encourage early supplier engagement in new product
development and manufacturing. Early supplier engagement is critical to meeting our customers’ needs by helping existing
suppliers to be successful, developing new suppliers, and establishing long-term links in the supply chain. Individual commodity
groups within GSC enable us to leverage commodity buys across business groups. Overall, Woodward’s GSC organization promotes
a partnering relationship between our suppliers and our business groups, ultimately to the benefit of our customers and our
shareholders.

GSC also promotes compliance, integrity, and social responsibility within our supply chain through supplier selection and
verification processes. These procedures include an evaluation of ethics policies and compliance processes established by our
suppliers. As part of GSC, we also seek to promote diversity, including by offering groups the opportunity to provide services,
supplies, parts, or subcontracting for manufacturing processes. We are also open to entering into mentor-protégé arrangements
with small businesses, veteran-owned businesses, historically under-utilized business zone groups, and small businesses owned
by women in order to foster greater competition and promote opportunities across our industries.

Key Business Processes

In addition to the governance processes outlined above, Woodward has established key business processes to guide business and
operations across all business groups. These Key Business Processes include:

Business and Financial Planning—Driven by an annual cadence, this process is focused on confirming the overall health of the
businesses, guiding investor expectations; setting compensation targets; resource planning for operations and discretionary
spending, project spending, tax planning, and cash flow generation; property, plant, and equipment investment; capital structure;
and capabilities for growth.

Organizational Capability—This process focuses on identifying and developing members and leaders to support Woodward’s long-
term viability. Recruiting, staffing, retention, performance management, salary planning, career development and succession
planning are included in this process. It also includes an annual cadence to evaluate the strength of the organization.

Product Life Cycle—Woodward has established a Product Life Cycle {“PLC”} process to address all of the phases of a product’s
life, from idea conception through obsolescence. In light of the long-cycle nature of many of our businesses, these phases can
begin as early as 5-10 years before production.

Woodward Lean Enterprise System (WLES)—Woodward recognizes that long-term success relies not only on new product
innovation, but also on continuously improving our processes. Woodward has established a “Lean Enterprise System” process to
support this continuous improvement. The goals of WLES are perfect quality, perfect delivery, and zero waste.

Quality Systems—This process addresses quality management, customer quality control, AS9100 and other certifications, and
regulatory compliance. The goals of the Quality Systems process include institutionalizing our continuous improvement processes,
participating in the implementation of improvement strategies, benchmarking quality against the industry, and ensuring quality
remains an integral part of all Woodward activities.

Customer Relationship Management—Our relationships with our customers and the solutions we bring them are critical to their
success and ours. They expect system-level solutions that meet their needs and allow their products to exceed the performance,
reliability and efficiency of their competitor’s products. To effectively do this we must closely partner with them to anticipate their
needs and deliver the products and services they have come to expect from us.

22 2015 Sustainability Report

Woodward member from
Rockford, IL

23
 WOODWARD TODAY
AND TOMORROW
Woodward sets the global standard in energy control and optimization
solutions. We collaborate with our customers, some of the world’s largest
companies, to develop innovative solutions to complex challenges.
Through technology-leadership and lean processes, we are engineering
a better, cleaner world through innovations in the aerospace and energy
markets.

Always innovating for a better future.

We are engaged and respected members of our communities devoting
our time and talent to improving the places where we live and work. Our
new facilities are designed with lean principles in mind, focusing on our
value streams and an open, collaborative environment.

Our products perform reliably in the harsh environments in which they

operate. Making our mark on the industries we serve, Woodward is
solving our customers’ biggest challenges, impacting the world, and
transforming today’s goals into tomorrow’s realities.

Woodward has a clear path to long-term growth and sustainability…

always innovating for a better future.

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