Slide 1: 3Q 2022 Earnings Conference Call
3Q 2022 Earnings Conference Call October 25, 2022 © 2022 Raytheon Technologies All rights reserved
Slide 2: Forward-Looking Statements
Forward-Looking Statements Note: All results and expectations in the presentation reflect continuing operations unless otherwise noted. This webcast contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the secur
Slide 3: 3Q 2022 Highlights and Full Year Outlook
3Q 2022 Highlights Full Year Outlook Sales up 6% organically* versus prior year Sales $67.0B - $67.3B Prior: $67.75B - $68.75B Commercial aftermarket sales up 24% versus prior year Organic sales growth %* 5% - 6% Prior: 6% - 8% Received over $22B of total awards in Q3; 1.32 total book-to-bill Adjust
Slide 4: 3Q 2022 Sales, EPS and Cash Flow
3Q 2022 Sales EPS Cash Flow from continuing operations GAAP Adjusted* 6% organic Up 1% Down 4% growth* $1.26 $17.0B $1.21 $0.8B ($0.5B) $16.2B $0.93 $0.94 $0.3B 2021 2022 2021 2022 2021 2022 Cash Flow CapEx Free Cash from continuing operations 2021 2022 Flow* Excludes: Acq. Accounting Adj. ($0.30) (
Slide 5: Collins Aerospace Segment Highlights
Collins Aerospace Segment Highlights 3Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 5,100 5,100 11% Operating Profit 616 630 31% ROS 12.1% 12.4% 190 bps • Organic sales* up 13% • Adjusted sales* up 11% – Commercial aftermarket up 25% – Commercial OE up 16% – Military down 6% Collins Aerospa
Slide 6: Pratt & Whitney Segment Highlights
Pratt & Whitney Segment Highlights 3Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 5,380 5,380 14% Operating Profit 316 318 68% ROS 5.9% 5.9% 190 bps • Organic sales* up 15% • Adjusted sales* up 14% – Commercial OE up 26% – Commercial aftermarket up 23% – Military down 2% On October 11, Prat
Slide 7: Intelligence & Space Segment Highlights
Raytheon Intelligence & Space Segment Highlights 3Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 3,626 3,626 (3%) Operating Profit 371 371 (5%) ROS 10.2% 10.2% (30) bps • Organic sales* up 2% • Adjusted sales* down 3% – Global Training and Services divestiture – Lower volume in Command, Cont
Slide 8: Missiles & Defense Segment Highlights
Raytheon Missiles & Defense Segment Highlights 3Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 3,678 3,678 (6%) Operating Profit 408 416 (15%) ROS 11.1% 11.3% (130) bps • Organic sales* down 5% • Adjusted sales* down 6% – Continuing supply chain constraints – Declines in Land Warfare and Air
Slide 9: 2023 Environment
2023 Environment Positives Monitoring Challenges Aftermarket Geopolitical landscape Supply chain / inflation International travel recovery European energy supply Labor availability Commercial OE deliveries Continuing resolution Pension Global defense spending Global tax environment Cost reduction /
Slide 10: Priorities
Priorities Continued support of employees, customers and suppliers Invest in technology and product innovation to drive industry leadership Deliver RTX synergies Drive structural cost reduction Disciplined capital deployment Focused on delivering on our long-term commitments 9
Slide 11: © 2022 Raytheon Technologies All rights reserved
© 2022 Raytheon Technologies All rights reserved
Slide 12: Appendix
a Appendix SZ Raytheon W anf Technologies
Slide 13: Use and Definitions of Non-GAAP Financial Measures
Use and Definitions of Non-GAAP Financial Measures Raytheon Technologies Corporation (“RTC”) reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). We supplement the reporting of our financial information determined under GAAP with ce
Slide 14: 2022 Segment Outlook
2022 Segment Outlook ($ millions) Adjusted Reported Sales Organic Sales Operating VPY % VPY %* Profit VPY* Current Up low double digits Up low double digits $750 - $825 Collins Aerospace Prior Up low double digits Up low double digits $700 - $825 Current Up low teens Up low teens $650 - $700 Pratt &
Slide 15: Additional 2022 Outlook Items
Additional 2022 Outlook Items FY 2022 FY 2022 Prior1 Current Adjusted Tax Rate* 18.0% - 18.5% ~15.5% Interest Expense ~$1,300M ~$1,300M Corporate Expense and Other Unallocated Items ~$325M ~$325M FAS/CAS Operating Adjustment ~$1,500M ~$1,500M Non-Service Pension Income ~$1,875M ~$1,875M Capex Spendi
Slide 16: 2022 Trends
2022 Trends 3Q Sequential Commercial Pratt & Whitney Active YTD Book-to-Bill Ratio Aftermarket Growth Engines A320 V2500 A320 GTF A220 14% 90% 86% 85% 84% 83% 84% 82% 83% 79% 1.33 78% 70% 67% 0.97 4% RIS RMD Collins Pratt & 4Q '21 1Q '22 2Q '22 3Q'22 Whitney Active is defined as engines with flight
Slide 17: P&W Engine Shipments to Customers
Raytheon Technologies: P&W Engine Shipments to Customers 2021 2022 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Military 44 61 58 55 218 60 62 49 Large Commercial1 137 144 165 177 623 119 177 192 Pratt & Whitney Canada2 396 467 475 487 1,825 455 459 509 1) Large commercial excludes industrial engine shipments 2) Exclude
Slide 18: Free Cash Flow Reconciliation
Raytheon Technologies: Free Cash Flow Reconciliation ($ millions) 3Q 2022 Net income from continuing operations 1,395 Depreciation & amortization 1,047 Change in working capital (781) Other (883) Cash flow from operations 778 Capital expenditures (515) Free cash flow 263 17
Slide 19: 3Q 2022: Raytheon Technologies Sales Reconciliation
3Q 2022: Raytheon Technologies Sales Reconciliation Total Acquisitions Reported Organic and Other1 Growth Divestitures Collins Aerospace 11% 13% (1%) (1%) Pratt & Whitney 14% 15% - (1%) RIS (3%) 2% (4%) (1%) RMD (6%) (5%) - (1%) Elims & Other 12% 12% - - Total 5% 6% (1%) - 18 1) Includes the impact
Slide 20: 3Q 2022: Raytheon Technologies Restructuring Costs
3Q 2022: Raytheon Technologies Restructuring Costs ($ millions) 2022 2021 Q3 YTD Restructuring impact to: Q1 2022 Q2 2022 Q3 2022 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Operating profit Collins Aerospace Systems (3) (2) (14) (19) (18) (12) (2) (8) (40) Pratt & Whitney (2) (1) (2) (5) (20) 16 (
Slide 21: 2021 Reported to Adjusted
Raytheon Technologies: 2021 Reported to Adjusted ($ millions) Restructuring & Significant non-recurring and non- Reported operational items 1 Adjusted1 (Unaudited) (Unaudited) Net Sales Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY
Slide 22: 2022 Reported to Adjusted
Raytheon Technologies: 2022 Reported to Adjusted ($ millions) 1 Restructuring & Significant non-recurring and non-operational items Reported Adjusted1 (Unaudited) (Unaudited) Net Sales Q1 2022 Q2 2022 Q3 2022 Q3 YTD 2022 Q1 2022 Q2 2022 Q3 2022 Q3 YTD 2022 Q1 2022 Q2 2022 Q3 2022 Q3 YTD 2022 Collins
Slide 23: Reconciliation of GAAP to Adjusted: Collins Aerospace Systems
Raytheon Technologies: Reconciliation of GAAP to Adjusted Collins Aerospace Systems ($ millions) (Unaudited) (Unaudited) 2022 2021 Q1 2022 Q2 2022 Q3 2022 Q3 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Collins Aerospace Systems Net sales $ 4,824 $ 5,011 $ 5,100 $ 14,935 $ 4,370 $ 4,545 $ 4,592
Slide 24: Reconciliation of GAAP to Adjusted: Pratt & Whitney
Raytheon Technologies: Reconciliation of GAAP to Adjusted Pratt & Whitney ($ millions) (Unaudited) (Unaudited) 2022 2021 Q1 2022 Q2 2022 Q3 2022 Q3 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Pratt & Whitney Net sales $ 4,529 $ 4,969 $ 5,380 $ 14,878 $ 4,030 $ 4,280 $ 4,725 $ 5,115 $ 18,150 Adj
Slide 25: Reconciliation of GAAP to Adjusted: Raytheon Intelligence & Space
Raytheon Technologies: Reconciliation of GAAP to Adjusted Raytheon Intelligence & Space ($ millions) (Unaudited) (Unaudited) 2022 2021 Q1 2022 Q2 2022 Q3 2022 Q3 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Raytheon Intelligence & Space Net sales $ 3,572 $ 3,570 $ 3,626 $ 10,768 $ 3,765 $ 3,805
Slide 26: Reconciliation of GAAP to Adjusted: Raytheon Missiles & Defense
Raytheon Technologies: Reconciliation of GAAP to Adjusted Raytheon Missiles & Defense ($ millions) (Unaudited) (Unaudited) 2022 2021 Q1 2022 Q2 2022 Q3 2022 Q3 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Raytheon Missiles & Defense Net sales $ 3,527 $ 3,558 $ 3,678 $ 10,763 $ 3,793 $ 3,985 $ 3,
Slide 27: Reconciliation of GAAP to Adjusted: Non-Segment Operating Profit
Raytheon Technologies: Reconciliation of GAAP to Adjusted Non-Segment Operating Profit ($ millions) (Unaudited) (Unaudited) 2022 2021 Q1 2022 Q2 2022 Q3 2022 Q3 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Eliminations and other Net sales $ (736) $ (794) $ (833) $ (2,363) $ (707) $ (735) $ (746)
Slide 28: Reconciliation of GAAP to Adjusted: Consolidated Income, EPS
Raytheon Technologies: Reconciliation of GAAP to Adjusted Consolidated Income, Earnings Per Share ($ millions) (Unaudited) (Unaudited) 2022 2021 Income (Expense) Q1 2022 Q2 2022 Q3 2022 Q3 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Income from continuing operations attributable to common share