Woodward, Inc. · NASDAQ:WWD

Woodward — Q4 FY2022 Earnings Presentation

24 slides from Woodward's earnings presentation, Nov 17, 2022

  1. Slide 1: Fourth Quarter and Fiscal Year 2022 Results

    FOURTH QUARTER AND FISCAL YEAR 2022 RESULTS November 17, 2022

  2. Slide 2: Q4 Fiscal Year 2022 Agenda

    Q4 FISCAL YEAR 2022 AGENDA IMPRESSIONS & INTRODUCTION MARKET REVIEW FINANCIAL RESULTS & OUTLOOK Dan Provaznik Chip Blankenship Mark Hartman ________ ________ ________ 2 | © WOODWARD, INC. PROPRIETARY

  3. Slide 3: Cautionary Statement

    FOR YOUR IN FOR MATION CAUTIONARY 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, our expectations of revenue growth in fiscal year 202

  4. Slide 4: Fiscal Year 2022 Summary

    FISCAL YEAR 2022 SUMMARY STRONG DEMAND ACROSS THE BUSINESS EARNINGS NEGATIVELY IMPACTED BY SALES NEGATIVELY IMPACTED BY • NET INFLATIONARY PRESSURES ON • $85M OF GLOBAL SUPPLY CHAIN AND LABOR MATERIAL AND LABOR COSTS DISRUPTIONS • GLOBAL SUPPLY CHAIN DISRUPTIONS • UNFAVORABLE FOREIGN CURRENCY EXCHAN

  5. Slide 5: Q4 FY 2022 Consolidated Results

    Q4 FY 2022 CONSOLIDATED RESULTS 640 $0.88 54 54 $0.84 Adjusted1 570 $0.82 $0.76 Adjusted1 Adjusted1 51 50 Adjusted1 ↑12% Net Sales (mil $) Earnings per Share (EPS) Net Earnings (mil $) 5 | © WOODWARD, INC. FY21 FY22 PROPRIETARY

  6. Slide 6: Fiscal Year 2022 Consolidated Results

    FISCAL YEAR 2022 CONSOLIDATED RESULTS 427 2.38 212 $3.24 209 2.25 $3.18 Adjusted1 Adjusted1 $2.71 $2.75 Adjusted1 ↑6% 174 172 Adjusted1 141 Net Sales (bil $) Earnings per Share (EPS) Net Earnings (mil $) Free Cash Flow (mil $) (Fiscal Year-to Date) 6 | © WOODWARD, INC. FY21 FY22 PROPRIETARY

  7. Slide 7: Aerospace Overview

    WM woopwarpD AEROSPACE OVERVIEW

  8. Slide 8: Aerospace Markets

    AEROSPACE MARKETS COMMERCIAL OEM  24% sales increase over the prior year quarter  Higher OEM build rates COMMERCIAL AFTERMARKET  34% sales increase over the prior year quarter  Increased passenger traffic – both domestic and international  Increased fleet utilization 8 | © WOODWARD, INC. PROPRI

  9. Slide 9: Aerospace Markets

    AEROSPACE MARKETS DEFENSE OEM  18% sales decrease over the prior year quarter  Decline in guided weapons  Other markets were stable DEFENSE AFTERMARKET  7% sales decrease over the prior year quarter  Impacted by global supply chain and labor disruptions 9 | © WOODWARD, INC. PROPRIETARY

  10. Slide 10: Aerospace Q4 Fiscal Year 2022

    AEROSPACE Q4 FISCAL YEAR 2022 408 66 377 63 17.4% 15.5% ↑8% Segment Sales (mil $) Segment Earnings (mil $) Segment Margin 10 | © WOODWARD, INC. FY21 FY22 PROPRIETARY

  11. Slide 11: Aerospace Fiscal Year 2022

    AEROSPACE FISCAL YEAR 2022 1.52 1.40 234 231 16.7% 15.2% ↑8% Segment Sales (bil $) Segment Earnings (mil $) Segment Margin 11 | © WOODWARD, INC. FY21 FY22 PROPRIETARY

  12. Slide 12: Industrial Overview

    WM woopwarpD INDUSTRIAL OVERVIEW

  13. Slide 13: Industrial Markets

    INDUSTRIAL MARKETS POWER GENERATION  Strong growth in Asia driving demand for industrial turbomachinery  Aftermarket activity increasing  Data center back-up power demand is strong ________ TRANSPORTATION  Global marine market strong on increasing ship build rates and higher utilization  China

  14. Slide 14: Industrial Q4 Fiscal Year 2022

    INDUSTRIAL Q4 FISCAL YEAR 2022 232 10.7% 193 21 21 9.0% 20% Segment Sales (mil $) Segment Earnings (mil $) Segment Margin 14 | © WOODWARD, INC. FY21 FY22 PROPRIETARY

  15. Slide 15: Industrial Fiscal Year 2022

    INDUSTRIAL FISCAL YEAR 2022 109 863 12.9% 842 83 9.6% 3% Segment Sales (mil $) Segment Earnings (mil $) Segment Margin 15 | © WOODWARD, INC. FY21 FY22 PROPRIETARY

  16. Slide 16: Selected Financial Results

    SELECTED FINANCIAL RESULTS Quarter and Year-to-Date Comparatives Q4 FY 22 Q4 FY 21 YTD FY 22 YTD FY 21 Gross Margin * 21.2% 23.5% 22.0% 24.5% SG&A Expenses - % of Sales 7.8% 6.7% 8.5% 8.3% R&D Expenses - % of Sales 4.7% 4.9% 5.0% 5.2% Effective Tax Rate 6.5% 18.2% 14.1% 15.1% EBITDA1 (mils) $ 96 $ 1

  17. Slide 17: Capital Deployment to Stockholders

    CAPITAL DEPLOYMENT TO STOCKHOLDERS $518M RETURNED TO SHAREHOLDERS FY22 $45M Dividends $473M Share Repurchases RETURN TO SHAREHOLDERS DIVIDENDS SHARE REPURCHASES Long term commitment to  $45M in fiscal 2022  $473M of shares repurchased in fiscal 2022 return a minimum 50% of  $800M share repurchase

  18. Slide 18: Fiscal Year Outlook – 2023

    FISCAL YEAR OUTLOOK – 2023 WOODWARD AEROSPACE  Revenue between $2.60 and $2.75B  Revenue increase between 14% and 19%  Effective tax rate1 ~19%  Margin increase between 150 to 200 basis points  EPS between $3.15 and $3.60 based on ~61 million shares INDUSTRIAL  ~$10M increase in annual interes

  19. Slide 19: Appendix

    WM woopwarpD APPENDIX

  20. Slide 20: Non-U.S. GAAP Reconciliations

    APPEN DIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries RECONCILIATION OF EARNINGS TO ADJUSTED EARNINGS1 (Unaudited - in thousands, except per share amounts) Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Before Income Net of Income Per Share, Net Before

  21. Slide 21: Non-U.S. GAAP Reconciliations

    APPEN DIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries RECONCILIATION OF NET EARNINGS TO EBIT1 AND ADJUSTED EBIT1 (Unaudited - in thousands) Three Months Ended Year Ended September 30, September 30, 2022 2021 2022 2021 Net earnings (U.S. GAAP) $ 54,041 $ 49,905 $ 171,698 $ 208,649 I

  22. Slide 22: Non-U.S. GAAP Reconciliations

    APPEN DIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries RECONCILIATION OF CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW AND ADJUSTED FREE CASH FLOW 1 (Unaudited - in thousands) Year Ended September 30, 2022 2021 Net cash provided by operating activities $ 193,638 $ 464,669 Pa

  23. Slide 23: Non-U.S. GAAP Measures

    APPEN DIX NON-U.S. GAAP MEASURES 1Adjusted and Non-U.S. GAAP Financial Measures: Adjusted net earnings, adjusted earnings per these non-U.S. GAAP financial measures is not intended to be considered in isolation of, or as a share, adjusted EBIT, adjusted EBITDA, adjusted effective tax rate, and adjus

  24. Slide 24: Always Innovating for a Better Future

    ALWAYS INNOVATING FOR A BETTER FUTURE 24 | © WOODWARD, INC. PROPRIETARY

Woodward — Q4 FY2022 Earnings Presentation on 6ix