Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Q2 2020 Earnings Presentation
22 slides from Westinghouse Air Brake Technologies's earnings presentation, Jul 28, 2020
Slide 1: Wabtec 2nd Quarter 2020 Financial Results & Company Highlights
Wabtec 2nd Quarter 2020 Financial Results & Company Highlights July 28, 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: Strong execution in a difficult environment
Strong execution in a difficult environment Sales of $1.7B, EPS of $0.46 and adjusted EPS of $0.87 Operating margin of 9.2%; Adj. operating margin of 15.1% Strong cash conversion … cash flow from ops $311M Delivering on synergies & cost actions >$70M in synergies YTD … net expected synergies on-trac
Slide 4: Market and segment dynamics
Market and segment dynamics Transit North American freight volumes expected to gradually recover from 2Q lows; international freight volumes more resilient 2Q expected peak in storage of locomotives and freight cars Significant installed base and improving carloads support recovery in services & aft
Slide 5: Freight Services: Navigating complex markets
Freight Services: Navigating complex markets Capture aftermarket opportunity … prioritized dispatch of Wabtec fleet, increased locomotive utilization, new long-term contracts Deliver outcomes … improving fleet reliability, extending asset life with mods, launching new products (FDL advantage) Contin
Slide 6: 2Q 2020 performance
2Q 2020 performance Highlights Sales decline driven by COVID-19 disruption across Freight & Transit Strong operational performance driven by cost actions and realization of synergies Strong cash flow conversion Multi-year backlog provides visibility Sales Income from ops Profit margin EPS Cash from
Slide 7: Freight segment performance
Freight segment performance Freight Sales Income from ops Profit margin % Backlog (Backlog negatively impacted by $58M due to FX) Adjusted(1) $229M 19.0% Reported $1,205M $142M 11.7% $18.0B YoY(2) (21)% (30)%* (2.5) pts* Strong execution in a dynamic and challenging market Freight Segment income fro
Slide 8: Transit segment performance
Transit segment performance Product Line OE Aftermarket (32)% (18)% Sales $227M $305M YoY Transit Sales Income from ops Profit margin % Backlog (Backlog negatively impacted by $79M due to FX) Adjusted(1) $51M 9.6% Reported $533M $40M 7.5% $3.4B YoY(2) (25)% (26)%* (0.2) pts* Transit Segment income f
Slide 9: Financial position
2Q20 1Q20 Cash Total Debt Net Debt/Adj EBITDA Total Liquidity(1) $588M $4.47B 2.7X ~$1.9B $616M $4.75B 2.6X ~$1.2B Financial position 2Q20 GAAP cash flow from operations Strong 2Q 2020 cash performance Solid working capital management Includes ~$40M negative impact of prior charges Strong financial
Slide 10: Summary
Summary Solid execution in 2Q despite unprecedented environment … leveraging international footprint, significant installed base, scale and diversity of portfolio Exceeding synergy and cost actions across the business … reducing structural costs Strong financial position … delivered strong cash flow
Slide 11: Wabtec Corporation
CORPORATION
Slide 12: Appendix
Appendix
Slide 13: Income statement
Income statement Appendix A ( 1 of 2)
Slide 14: Income statement (cont.)
Income statement (cont.) Appendix A ( 2 of 2)
Slide 15: Balance sheet
Balance per sheet ese e eat dune 30, 2020 December 31, 2019 In millions Cash and cash equivalents, $ 587.9 $ 604.2 Receivables, net 4,410.3 1,663.9 Inventories, 4,799.5 4,773.1 Curent assets - other 172.0 Total current assets 3,969.7 Property, plant and equipment, net 1,612.4 ;0odwill 8,309.9 Other
Slide 16: Cash flow
Cash flow CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2020 2019 In millions Net cash provided by operating activities $ 2286 $ 443.8 Net cash used for investing activities (98.2) @,040.4) Net cash (used for) provided by financing activities (123.5) 726.4 Eff
Slide 17: EPS and non-GAAP Reconciliation (1 of 2)
EPS and non-GAAP Reconciliation Appendix D (1 of 2)
Slide 18: EPS and non-GAAP Reconciliation (2 of 2)
EPS and non-GAAP Reconciliation Appendix D (2 of 2)
Slide 19: EBITDA reconciliation
EBITDA reconciliation Appendix E
Slide 20: Sales by product line
Sales by product line Appendix F
Slide 21: Segment reconciliation (1 of 2)
Segment reconciliation Appendix G (1 of 2)
Slide 22: Segment reconciliation (cont.) (2 of 2)
Segment reconciliation (cont.) Appendix G (2 of 2)
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