Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Q1 2020 Earnings Presentation
17 slides from Westinghouse Air Brake Technologies's earnings presentation, May 4, 2020
Slide 1: Wabtec 1st Quarter 2020 Financial Results & Company Highlights
Wabtec 1st Quarter 2020 Financial Results & Company Highlights May 4, 2020 Exhibit 99.2
Slide 2: Forward looking statements & non-GAAP financial information
Forward looking statements & non-GAAP financial information This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigati
Slide 3: Response to COVID-19
Response to COVID-19 Protect health & safety of employees 1. Taking significant measures to protect our employees 2. Maintain operational capabilities Rail transportation deemed essential service Majority of Wabtec manufacturing sites remained open and operational throughout crisis Monitoring custom
Slide 4: 1Q results and segment dynamics
1Q results and segment dynamics Expect North American carload volume traffic to be significantly pressured in 2Q Installed base to drive demand in eventual recovery Multi-year backlog provides visibility in evolving demand environment Well positioned to navigate through the challenging environment S
Slide 5: 1Q 2020 performance
1Q 2020 performance Highlights Sales growth driven by GE Transportation, organic growth in Digital Electronics and Freight Services, offset by lower Transit sales due to COVID-19 Synergy, cost actions and improved Transit operating performance drove solid profit margin expansion Cash flow performanc
Slide 6: Segment performance
Segment performance Transit Sales Income from ops Profit margin % Backlog Adjusted(2) $75M 11.9% (7%)** 14.0%* 2.2 pts* Reported $629M $69M 10.9% $3.4B YoY(3) Freight Sales Income from ops Profit margin % Backlog Adjusted(1) $241M 18.5% Reported $1,301M $162M 12.4% $18.1B YoY(3) 42%** 28%* (2.1) pts
Slide 7: Financial position
1Q20 4Q19 Cash Total Debt Net Debt/Adj EBITDA Total Liquidity(1) $616M $4.75B 2.6X ~$1.2B $604M $4.43B 2.6X ~$1.6B Financial position 1Q20 GAAP Cash Flow From Operations Core 1Q20 cash performance of ($82M) in-line with usual seasonality Includes ~$80M negative impact of prior year restructuring, li
Slide 8: Prudent cost actions
Prudent cost actions Swiftly aligning operating costs with volume realities Committed to deliver synergy targets; driving reduction in SG&A Eliminated discretionary spend; suspended merit increases; hiring freeze since Jan 1 Managing cash flow Reducing working capital in-line with volumes Targeting
Slide 9: Summary
Summary Company performed well in 1Q despite unprecedented market conditions … leveraging significant installed base, scale and diversity of business Prudently managing cost and cash amidst volume environment … tightly managing structural costs Strong financial position … taking action to further en
Slide 10: Corporation
CORPORATION
Slide 11: Appendix
Appendix
Slide 12: Income statement
Income statement Appendix A ( 1 of 2)
Slide 13: Income statement (cont.)
Income statement (cont.) Appendix A ( 2 of 2)
Slide 14: Condensed Consolidated Balance Sheets
Balance Append 8 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION Ss h eet CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, 2020 December 31, 2019 Inmillions Cash and cash equivalents $ 6159 $ 604.2 Receivables, net 1,672.0 1,663.9 Imentories 1,785.7 1,773.1 Current assets - other 167.5 15
Slide 15: Cash flow
Appendix C Cash flow WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION IDATED OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, 2020 2019 In millions Net cash (used for) provided by operating activities $ 19) $ 31.3 Net cash used for investing activities (62.6) (2,739.6) Net cash provided by fina
Slide 16: EPS and non-GAAP Reconciliation
EPS and non-GAAP Reconciliation Appendix D
Slide 17: EBITDA reconciliation
EBITDA reconciliation Appendix E
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