Woodward, Inc. · NASDAQ:WWD

Woodward — Q1 FY2021 Earnings Presentation

19 slides from Woodward's earnings presentation, Feb 1, 2021

  1. Slide 1: Fiscal Year 2021 First Quarter Results

    Fiscal Year 2021 First Quarter Results February 1, 2021

  2. Slide 2: Today's Agenda

    Today’s Agenda  Highlights Don Guzzardo  Market Review Tom Gendron  Financial Results & Outlook Bob Weber  Q&A 2 | © WOODWARD, INC. PROPRIETARY

  3. Slide 3: Cautionary Statement

    Cautionary Statement 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 about the continued and expected or potential effects o

  4. Slide 4: Q1 Fiscal Year 2021 Consolidated Results

    Q1 Fiscal Year 2021 Consolidated Results Woodward Sales (mil $) Net Earnings (mil $) 720 538 71 53 Reported 42 Adjusted Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Free Cash Flow1 (mil $) Earnings Per Share 139 $1.10 Reported $0.83 Reported Adjusted $0.64 Adjusted 10 29 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 4 | © WOO

  5. Slide 5: Volatility Due to COVID-19…We Acted Swiftly

    Volatility Due to COVID-19…We Acted Swiftly Focused on the safety of our members and communities while maintaining financial strength Strategically adjusted our business to align with customer expectations Managing cash and de-risking the balance sheet  Strong liquidity with approximately $1.2 bill

  6. Slide 6: Aerospace

    Aerospace Commercial aerospace  Significantly impacted by COVID-19  Anticipate future improvement in passenger traffic with rollout of vaccines  Boeing 737 MAX returning to service in many key markets Commercial aftermarket  48% sales decrease for the quarter versus prior year period Defense  D

  7. Slide 7: Industrial

    Industrial Power generation  Gas turbine market remains near bottom of cycle  Not expected to be as negatively impacted by pandemic  Increased emissions regulations driving shift to nat gas and cleaner burning diesel engines  Expect continued growth in energy demand to be led by Asia Transportat

  8. Slide 8: Aerospace Q1 Fiscal Year 2021 Results

    Aerospace Q1 Fiscal Year 2021 Results Aerospace Sales (mil $) Segment net sales 474  Significantly lower commercial 322  Slight declines in defense Segment earnings  Lower sales volume Q1 FY21 Q1 FY20  Partially offset by cost reduction initiatives Segment Earnings (mil $) Segment Margin % 19.6

  9. Slide 9: Industrial Q1 Fiscal Year 2021 Results

    Industrial Q1 Fiscal Year 2021 Results Industrial Sales (mil $) Segment sales 246  Divestiture of RPS  Weakness in oil and gas 216 218 Reported  Negative impacts of the pandemic on our markets Excluding RPS  Partially offset by strong China natural gas trucks Segment earnings Q1 FY21 Q1 FY20  C

  10. Slide 10: Selected Financial Items

    Selected Financial Items Quarter-to-Date Comparatives Q1 FY 21 Q1 FY 20 Gross Margin * 25.3% 25.7% SG&A Expenses - % of Sales 10.4% 8.6% R&D Expenses - % of Sales 6.0% 5.1% Effective Tax Rate 12.6% 13.3% 1 EBITDA (mils) $ 89 $ 103 1 Adjusted EBITDA (mils) $ 89 $ 127 Cash from Operations (mils) $ 147

  11. Slide 11: Fiscal Year 2021 Outlook

    Fiscal Year 2021 Outlook The dynamic and volatile nature of the COVID-19 global pandemic has continued to cause uncertainty in many of our markets. While the ongoing rollout of vaccines across the globe has begun, new viral variants and regional resurgences make forecasting the future of our busines

  12. Slide 12: Appendix

    W woopwarpD Appendix

  13. Slide 13: Non-U.S. GAAP Measures

    Non-U.S. GAAP Measures Woodward, Inc. and Subsidiaries 1 RECONCILIATION OF EARNINGS TO ADJUSTED EARNINGS (Unaudited - in thousands, except per share amounts) Three-Months Ended December 31, 2020 Three-Months Ended December 31, 2019 Earnings Before Earnings Per Earnings Before Earnings Per Income Tax

  14. Slide 14: Non-U.S. GAAP Measures (cont.)

    Non-U.S. GAAP Measures (cont.) Woodward, Inc. and Subsidiaries RECONCILIATION OF NET EARNINGS TO EBIT1 AND ADJUSTED EBIT 1 (Unaudited - in thousands) Q1 FY21 Q1 FY20 Net earnings (U.S. GAAP) $ 41,570 $ 53,373 Income taxes 6,014 8,175 Interest expense 8,906 9,009 Interest income (495) (487) EBIT (Non

  15. Slide 15: Non-U.S. GAAP Measures (cont.)

    Non-U.S. GAAP Measures (cont.) Woodward, Inc. and Subsidiaries 1 1 RECONCILIATION OF NET EARNINGS TO EBITDA AND ADJUSTED EBITDA (Unaudited - in thousands) Q1 FY21 Q1 FY20 Net earnings (U.S. GAAP) $ 41,570 $ 53,373 Income taxes 6,014 8,175 Interest expense 8,906 9,009 Interest income (495) (487) Amor

  16. Slide 16: Non-U.S. GAAP Measures – (cont.)

    Non-U.S. GAAP Measures – (cont.) Woodward, Inc. and Subsidiaries RECONCILIATION OF INDUSTRIAL SEGMENT NET SALES EXCLUDING RENEWABLE POWER SYSTEMS AND RELATED BUSINESSES1 (Unaudited - in thousands) Q1 FY21 Q1 FY20 Industrial segment net sales $ 215,952 $ 246,430 Renewable power systems and related bu

  17. Slide 17: Non-U.S. GAAP Measures – (cont.)

    Non-U.S. GAAP Measures – (cont.) 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, except per share amounts) Q1 FY21 Q1 FY20 Net cash provided by operating activities (U.S. GAAP) $ 146,72

  18. Slide 18: Explanation of Non-U.S. GAAP Measures

    Explanation of Non-U.S. GAAP Measures 1Adjusted and Non-U.S. GAAP Financial Measures: Adjusted net earnings, adjusted earnings per share, adjusted EBIT, adjusted EBITDA, adjusted effective tax rate, Industrial segment sales excluding RPS, Industrial segment earnings excluding RPS, and adjusted nonse

  19. Slide 19: Always Innovating for a Better Future

    ALWAYS INNOVATING FOR A BETTER FUTURE 19 | © WOODWARD, INC. PROPRIETARY

Woodward — Q1 FY2021 Earnings Presentation on 6ix