Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Q2 2021 Earnings Presentation
25 slides from Westinghouse Air Brake Technologies's earnings presentation, Jul 29, 2021
Slide 1: Wabtec 2nd Quarter 2021 Financial Results & Company Highlights
Wabtec 2nd Quarter 2021 Financial Results & Company HighlightsJuly 29, 2021
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: Today's participants
Today’s participants Rafael SantanaPresident & Chief Executive Officer Pat DuganChief Financial Officer & Executive Vice President Eric GebhardtChief Technology Officer & Executive Vice President Kristine KubackiVice President, Investor Relations PRESENTERS INVESTOR RELATIONS
Slide 4: 2Q 2021 overview
2Q 2021 overview Proven execution driving growth through the recovery 2nd quarter cash from operations was negatively impacted by securitization of accounts receivable of $11M. SALES ADJUSTED OPERATING MARGIN ADJUSTED EARNINGS PER SHARE CASH FROM OPERATIONS (1) BACKLOG $1.06 GAAP: $0.66 $2.0B 15.2%
Slide 5: 2Q 2021 wins
2Q 2021 wins FDL Advantage engine upgrade International PTCorder with RumoInternational locomotive order Strategic collaborationBattery technologyHydrogen fuel cells Transit brakes, doors, HVAC orders Recognized for continued commitment to innovation Locomotive modernizations Trip Optimizer Zero-to-
Slide 6: 2Q 2021 financial summary
2Q 2021 financial summary SALES 2021 OPERATING INCOME 2021 EPS 2021 Adj 2020 Adj(3) 2021 2020 2021 Adj 2020 Adj(2) $2.0B $203M $0.66 $1.7B $262M $306M $0.87 $1.06 16% Adj. Margin(1) 15.1% 15.2% 2Q 2020 GAAP margin was 9.2% and 2Q 2021 GAAP operating margin was 10.1%.2Q 2020 GAAP operating income was
Slide 7: 2Q 2021 Freight segment performance
2Q 2021 Freight segment performance PRODUCT LINE YoY Equipment (2%) Lower loco deliveries driven by NA; Mining in recovery Components 15% Improving aftermarket & industrial offset by 19% decline in NA OE railcar build Services 22% Improving YoY freight trends drove unparking of locos … Nordco acquis
Slide 8: 2Q 2021 Transit segment performance
2Q 2021 Transit segment performance PRODUCT LINE YoY OE 41% Recovery in global transit spend on new projects Aftermarket 17% Aftermarket resilient despite COVID resurgence SALES 2021 OPERATING INCOME 2021 BACKLOG 2Q21 1Q21 2020 2021 Adj 2020 Adj(2) $0.68B $45M $0.53B $51M $73M(3) $3.7B $3.7B(4) 9.6%
Slide 9: 2Q 2021 orders and backlog
2Q 2021 orders and backlog TOTAL BACKLOG Backlog provides increased long-term visibility 12-MONTH BACKLOG Freight 12-month backlog up 14% from 4Q20 … highest level since 3Q19 YTD book-to-bill >1 ... driven by broad based order activity across the portfolio Multi- year backlog ~$21.5B Services Digita
Slide 10: Resilient business allows for execution on financial priorities
Resilient business allows for execution on financial priorities FOCUSED ON CASH CONVERSION 1H21 1H20 $229M $515M Cash from Ops Strong cash generation … solid cash conversion of net incomeFocused working capital management … YTD benefit from A/R securitization of $82MExecuting on synergy goals … on-t
Slide 11: Market outlook and guidance
Market outlook and guidance (1) Cash from Operations conversion % is defined as GAAP Cash from Operations divided by GAAP Net Income plus Depreciation & Amortization FREIGHT NA carloads Locomotive & railcar parkings International freight volumes NA railcar production Mining commodities TRA
Slide 12: FLXdrive: World's first battery electric locomotive
FLXdrive World’s first battery electric locomotive Loco safety/durability7+ mw432klbs / 76’6 powered axlesLead capable Loco safety/durability2.4 mw416klbs / 73’4 powered axlesDedicated consist FLXdrive 1.0 FLXdrive 2.0 Leveraging DIGITAL SOLUTIONS to deliver superior energy management~ 30% train lev
Slide 13: Carbon-Zero Locomotives Roadmap
Carbon-ZeroLocomotives Roadmap to Diesel-Electric(Bio-Diesel and Renewable Diesel) Battery-ElectricOperating In Consist Battery-Electric Lead Hydrogen HYDROGEN AVAILABILITY GREY H2 BLUE H2 GREEN H2 Locomotive Carbonemissions
Slide 14: Solid foundation for growth and increased shareholder value
Solid foundation for growth and increased shareholder value PROFITABLE GROWTHInnovators of scalable technologies. Leveraging robust installed base and scale to drive connected products and software, as well as recurring and service revenue streams. MARGIN EXPANSIONLean culture, operational excellenc
Slide 15: Corporation
CORPORATION
Slide 16: Appendix
Appendix
Slide 17: Income statement
Income statement Appendix A ( 1 of 2)
Slide 18: Income statement (cont.)
Income statement(cont.) Appendix A ( 2 of 2)
Slide 19: Balance sheet
Balance Appendix sh eet WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, 2021 December 31, 2020 Inmillions Cash and cash equivalents 8 4535 0S 598.7 Receivables, net 1,452.6 14125 Inventories 1,661.2 1,642.1 Other current assets 24090 226.5 T
Slide 20: Cash flow
Cash flow WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Inmillions Operating activities Net income Non-cash expense Receivables Inventories Accounts Payable Other assets and liabilities Net cash provided by operating a Net cash used for investing act
Slide 21: EPS and non-GAAP Reconciliation (1 of 2)
EPSand non-GAAP Reconciliation Appendix D(1 of 2)
Slide 22: EPS and non-GAAP Reconciliation (2 of 2)
EPSand non-GAAP Reconciliation Appendix D(2 of 2)
Slide 23: EBITDA reconciliation
EBITDA reconciliation Appendix E
Slide 24: Sales by product line
Sales by product line Appendix F
Slide 25: Segment reconciliation
Segment reconciliation Appendix G
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