Slide 1: Fiscal Year 2022 Second Quarter Results
FISCAL YEAR 2022 SECOND QUARTER RESULTS May 2, 2022
Slide 2: Q2 FY22 Agenda
Q2 FY22 AGENDA HIGHLIGHTS MARKET REVIEW FINANCIAL RESULTS & OUTLOOK Dan Provaznik Tom Gendron Mark Hartman ________ ________ ________ 2 | © WOODWARD, INC. PROPRIETARY
Slide 3: Cautionary Statement
FOR YOUR IN FORM ATIO N 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, statements regarding our business and financial outl
Slide 4: Summary
SUMMARY CONTINUING TO SEE STRONG SIGNS EARNINGS WEIGHED DOWN BY OF RECOVERY ACROSS THE BUSINESS • COVID-19 RELATED SUPPLY CHAIN AND LABOR SHORTAGES SALES NEGATIVELY IMPACTED BY • NET INFLATIONARY PRESSURES $100M OF INDUSTRY-WIDE COVID • HIRING AND TRAINING RELATED DISRUPTIONS INEFFICIENCIES YTD ADJU
Slide 5: Q2 Fiscal Year 2022 Consolidated Results
Q2 FISCAL YEAR 2022 CONSOLIDATED RESULTS FY22 FY21 68 587 581 206 48 47 Adjusted1 $1.04 ↑1% $0.74 $0.72 Adjusted1 26 27 Adjusted1 Net Sales (mil $) Earnings per Share (EPS) Net Earnings (mil $) Free Cash Flow1 (mil $) (Fiscal Year-to Date) 5 | © WOODWARD, INC. PROPRIETARY
Slide 6: Aerospace Overview
W woopwarD AEROSPACE OVERVIEW
Slide 7: Aerospace Markets
AEROSPACE MARKETS COMMERCIAL OEM 21% sales increase over the prior year quarter U.S. and Europe domestic passenger traffic nearing pre-COVID levels China domestic traffic collapsed as a result of COVID-related government mandated lockdowns International travel improving, but still lagging CO
Slide 8: Aerospace Markets
AEROSPACE MARKETS DEFENSE Markets were stable Guided weapons declined as anticipated Defense aftermarket impacted by COVID-related supply chain disruptions 8 | © WOODWARD, INC. Q2 FISCAL YE AR 2022 PROPRIETARY
Slide 9: Aerospace Q2 Fiscal Year 2022
AEROSPACE Q2 FISCAL YEAR 2022 FY22 FY21 373 69 365 18.9% 60 16.0% ↑2% Segment Sales (mil $) Segment Earnings (mil $) Segment Margin 9 | © WOODWARD, INC. PROPRIETARY
Slide 10: Industrial Overview
W woopwarD INDUSTRIAL OVERVIEW
Slide 11: Industrial Markets
INDUSTRIAL MARKETS POWER GENERATION Solid demand for gas turbines, primarily in Asia Aftermarket activity increasing Data center back-up power demand is strong ________ TRANSPORTATION Marine markets improving on increased utilization of the in-service fleet China natural gas truck market c
Slide 12: Industrial Q2 Fiscal Year 2022
INDUSTRIAL Q2 FISCAL YEAR 2022 FY22 FY21 28 12.9% 217 214 17 8.1% 1% Segment Sales (mil $) Segment Earnings (mil $) Segment Margin 12 | © WOODWARD, INC. PROPRIETARY
Slide 13: Selected Financial Results
SELECTED FINANCIAL RESULTS Quarter and Year-to-Date Comparatives Q2 FY 22 Q2 FY 21 YTD FY 22 YTD FY 21 Gross Margin * 22.7% 25.3% 22.7% 25.3% SG&A Expenses - % of Sales 7.5% 7.6% 9.4% 9.0% R&D Expenses - % of Sales 5.5% 4.8% 5.1% 5.3% Effective Tax Rate 11.4% 13.0% 14.8% 12.8% EBITDA1 (mils) $ 92 $
Slide 14: Capital Deployment to Stockholders
CAPITAL DEPLOYMENT TO STOCKHOLDERS $294M RETURNED TO SHAREHOLDERS Q2 FY22 YTD $22M Dividends $272M Share Repurchases RETURN TO SHAREHOLDERS DIVIDENDS SHARE REPURCHASES Long term commitment to Returned $22M year to $272M of shares repurchased in the first half return minimum 50% of net date of fi
Slide 15: Revised Fiscal Year Outlook – 2022
REVISED FISCAL YEAR OUTLOOK – 2022 WOODWARD – AEROSPACE – Revenue between $2.40 and $2.55 billon Revenue up low double digits to mid-teens Adjusted effective tax rate1 ~20% Margin of ~18% Adjusted EPS between $3.20 and $3.60 based on ~64 million shares INDUSTRIAL – Previous outlook assum
Slide 16: Appendix
W woopwarD APPENDIX
Slide 17: Non-U.S. GAAP Reconciliations
APPENDIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries 1 RECONCILIATION OF EARNINGS TO ADJUSTED EARNINGS (Unaudited - in thousands, except per share amounts) Three-Months Ended Three-Months Ended March 31, 2022 March 31, 2021 Before Income Net of Income Per Share, Net Before Income N
Slide 18: Non-U.S. GAAP Reconciliations
APPEN DIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries RECONCILIATION OF NET EARNINGS TO EBIT AND ADJUSTED EBIT1 1 (Unaudited - in thousands) Three-Months Ended March 31, Six-Months Ended March 31, 2022 2021 2022 2021 Net earnings (U.S. GAAP) $ 47,906 $ 68,313 $ 78,211 $ 109,883 Inc
Slide 19: 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 FLOW1 AND ADJUSTED FREE CASH FLOW1 (Unaudited - in thousands, except per share amounts) Six-Months Ended March 31, 2022 2021 Net cash provided by operating activ
Slide 20: 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 evaluating cash generation levels. Securities analysts, investors, and others frequently use per share, adjusted EBIT, adjusted EBITDA, adjusted effective tax rate, and adjusted
Slide 21: Always Innovating for a Better Future
ALWAYS INNOVATING FOR A BETTER FUTURE 21 | © WOODWARD, INC. PROPRIETARY