Woodward, Inc. · NASDAQ:WWD

Woodward — Q3 FY2022 Earnings Presentation

21 slides from Woodward's earnings presentation, Aug 1, 2022

  1. Slide 1: Fiscal Year 2022 Third Quarter Results

    FISCAL YEAR 2022 THIRD QUARTER RESULTS August 1, 2022

  2. Slide 2: Q3 FY22 Agenda

    Q3 FY22 AGENDA HIGHLIGHTS FIRST FINANCIAL RESULTS IMPRESSIONS & & OUTLOOK MARKET REVIEW Dan Provaznik Chip Blankenship Mark Hartman ________ ________ ________ 2 | © WOODWARD, INC. PROPRIETARY

  3. 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

  4. Slide 4: Summary

    SUMMARY STRONG DEMAND ACROSS THE BUSINESS EARNINGS NEGATIVELY IMPACTED BY SALES NEGATIVELY IMPACTED BY • NET INFLATIONARY PRESSURES • $100M OF GLOBAL SUPPLY CHAIN AND LABOR • MATERIAL AND LABOR COSTS DISRUPTIONS • GLOBAL SUPPLY CHAIN DISRUPTIONS • UNFAVORABLE FOREIGN CURRENCY EXCHANGE • INEFFICIENCI

  5. Slide 5: Q3 Fiscal Year 2022 Consolidated Results

    Q3 FISCAL YEAR 2022 CONSOLIDATED RESULTS FY22 FY21 614 49 297 557 39 ↑10% $0.74 $0.64 49 52 Adjusted1 Net Sales (mil $) Earnings per Share (EPS) Net Earnings (mil $) Free Cash Flow1 (mil $) (Fiscal Year-to Date) 5 | © WOODWARD, INC. PROPRIETARY

  6. Slide 6: Aerospace Overview

    W woopwarD AEROSPACE OVERVIEW

  7. Slide 7: Aerospace Markets

    AEROSPACE MARKETS COMMERCIAL OEM  37% sales increase over the prior year quarter  Higher OEM build rates COMMERCIAL AFTERMARKET  44% sales increase over the prior year quarter  Increased passenger traffic – both domestic and international  Increased fleet utilization 7 | © WOODWARD, INC. PROPRI

  8. Slide 8: Aerospace Markets

    AEROSPACE MARKETS DEFENSE OEM  2% sales decrease over the prior year quarter  Markets were stable DEFENSE AFTERMARKET  12% sales decrease over the prior year quarter  Impacted by global supply chain and labor disruptions 8 | © WOODWARD, INC. Q2 FISCAL YE AR 2022 PROPRIETARY

  9. Slide 9: Aerospace Q3 Fiscal Year 2022

    AEROSPACE Q3 FISCAL YEAR 2022 FY22 FY21 402 341 57 15.6% 53 14.1% ↑18% Segment Sales (mil $) Segment Earnings (mil $) Segment Margin 9 | © WOODWARD, INC. PROPRIETARY

  10. Slide 10: Industrial Overview

    W woopwarD INDUSTRIAL OVERVIEW

  11. Slide 11: 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, higher utilization, and elevat

  12. Slide 12: Industrial Q3 Fiscal Year 2022

    INDUSTRIAL Q3 FISCAL YEAR 2022 FY22 FY21 216 213 27 12.6% 21 9.9% 1% Segment Sales (mil $) Segment Earnings (mil $) Segment Margin 12 | © WOODWARD, INC. PROPRIETARY

  13. Slide 13: Selected Financial Results

    SELECTED FINANCIAL RESULTS Quarter and Year-to-Date Comparatives Q3 FY 22 Q3 FY 21 YTD FY 22 YTD FY 21 Gross Margin * 21.8% 24.1% 22.4% 24.9% SG&A Expenses - % of Sales 7.6% 8.6% 8.8% 8.9% R&D Expenses - % of Sales 5.2% 5.3% 5.2% 5.3% Effective Tax Rate 21.6% 16.8% 17.2% 14.1% EBITDA1 (mils) $ 88 $

  14. Slide 14: Capital Deployment to Stockholders

    CAPITAL DEPLOYMENT TO STOCKHOLDERS $462M RETURNED TO SHAREHOLDERS Q3 FY22 YTD $34M Dividends $428M Share Repurchases RETURN TO SHAREHOLDERS DIVIDENDS SHARE REPURCHASES Long term commitment to  Returned $34M year to  $428M of shares repurchased in the first return minimum 50% of net date nine month

  15. Slide 15: Revised Fiscal Year Outlook – 2022

    REVISED FISCAL YEAR OUTLOOK – 2022 WOODWARD – AEROSPACE –  Revenue between $2.35 and $2.40 billon  Revenue increase between 8 and 10%  Adjusted effective tax rate1 ~17%  Margin of ~15%  Adjusted EPS between $2.55 and $2.75 based on ~63 million shares INDUSTRIAL –  Adjusted free cash flow betwe

  16. Slide 16: Appendix

    W woopwarD APPENDIX

  17. 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 June 30, 2022 June 30, 2021 Before Income Net of Income Per Share, Net Before Income Net

  18. 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 June 30, Nine-Months Ended June 30, 2022 2021 2022 2021 Net earnings (U.S. GAAP) $ 39,446 $ 48,861 $ 117,657 $ 158,744 Inc

  19. Slide 19: Non-U.S. GAAP Reconciliations

    APPEN DIX NON-U.S. GAAP RECONCILIATIONS Woodward, Inc. and Subsidiaries 1 1 RECONCILIATION OF CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW AND ADJUSTED FREE CASH FLOW (Unaudited - in thousands) Nine-Months Ended June 30, 2022 2021 Net cash provided by operating activities (U.S. GAAP) $ 86,0

  20. 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

  21. Slide 21: Always Innovating for a Better Future

    ALWAYS INNOVATING FOR A BETTER FUTURE 21 | © WOODWARD, INC. PROPRIETARY

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