Slide 1: 1Q 2023 Earnings Conference Call
4Q 1Q 2022 2023 Earnings Conference Call January 24,2023 April 25, 2023 © 2023 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 press release contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the
Slide 3: 1Q 2023 Highlights
1Q 2023 Highlights Sales up 10% organically* year-over-year with 40bps of adjusted segment margin expansion* Full Year Outlook Sales $72.0B - $73.0B Commercial recovery continues with aftermarket up 19% and OE up 17% year-over-year Organic sales growth %* 7% - 9% Record RTX backlog of $180B; Receive
Slide 4: RTX Realignment
RTX Realignment Key Changes • RI&S’ Command and Control Solutions moves to Collins • RI&S’ Air Traffic Management moves to Collins • Collins’ Intelligence, Surveillance, and Reconnaissance (ISR) moves to Raytheon • Remaining RMD and RI&S merge to form Raytheon Aligns our industry leading franchises
Slide 5: 2023 Environment
2023 Environment Positives Monitoring Challenges Commercial air traffic recovery Macroeconomic environment Supply chain / inflation (OE, Aftermarket, International) Global defense demand Geopolitical landscape Labor availability Cost reduction / synergies Global tax environment 4
Slide 6: 1Q 2023 Sales, EPS and Cash Flow
1Q 2023 Sales EPS Cash Flow from continuing operations GAAP Adjusted* 10% organic Up 31% Up 6% growth* Cash Flow Free Cash $17.2B $1.22 from continuing operations CapEx Flow* $1.15 $15.7B $0.97 $0.74 ($0.9B) ($0.5B) ($1.4B) 2022 2023 1Q 2022 1Q 2023 1Q 2022 1Q 2023 2022 2023 Excludes: Acq. Accountin
Slide 7: Collins Aerospace Segment Highlights
Collins Aerospace Segment Highlights 1Q 2023 ($ millions) Reported Adjusted* YOY Var.* Sales 5,581 5,581 16% Operating Profit 794 800 37% ROS 14.2% 14.3% 220 bps • Organic sales* up 17% • Adjusted sales* up 16% – Commercial aftermarket up 24% – Commercial OE up 12% – Military up 9% Collins Aerospace
Slide 8: Pratt & Whitney Segment Highlights
Pratt & Whitney Segment Highlights 1Q 2023 ($ millions) Reported Adjusted* YOY Var.* Sales 5,230 5,230 15% Operating Profit 415 434 41% ROS 7.9% 8.3% 150 bps • Organic sales* up 16% • Adjusted sales* up 15% – Commercial OE up 27% – Commercial aftermarket up 14% – Military up 13% • Adjusted operating
Slide 9: Raytheon Intelligence & Space Segment Highlights
Raytheon Intelligence & Space Segment Highlights 1Q 2023 ($ millions) Reported Adjusted* YOY Var.* Sales 3,565 3,565 0% Operating Profit 324 330 (13%) ROS 9.1% 9.3% (130) bps • Organic sales* flat • Adjusted sales* flat – Lower sales in Command, Control and Communications – Higher sales in Cyber and
Slide 10: Raytheon Missiles & Defense Segment Highlights
Raytheon Missiles & Defense Segment Highlights 1Q 2023 ($ millions) Reported Adjusted* YOY Var.* Sales 3,671 3,671 4% Operating Profit 328 335 (13%) ROS 8.9% 9.1% (190) bps • Organic sales* up 5% • Adjusted sales* up 4% – Higher volume in Advanced Technology and Air Power • Adjusted operating profit
Slide 11: Priorities
Priorities Deliver on customer commitments Invest in technology and product innovation to drive industry leadership 2023 Investor Day Paris Air Show l June 19th Execute business transformation to position for long-term success Drive operational excellence and continued structural cost reduction Disc
Slide 12: © 2023 Raytheon Technologies All rights reserved
© 2023 Raytheon Technologies All rights reserved
Slide 13: Appendix
a Appendix SZ Raytheon 12 anf Technologies
Slide 14: 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 15: 2023 Segment Outlook
2023 Segment Outlook ($ millions) Reported Sales Organic Sales Adjusted Operating VPY % VPY %* Profit VPY* Collins Aerospace Up low double digits Up low double digits $750 - $825 Pratt & Whitney Up low to mid-teens Up low to mid-teens $200 - $275 Raytheon Intelligence & Space Flat Flat $75 - $125 Ra
Slide 16: Additional 2023 Items
Additional 2023 Items FY 2023 Adjusted Tax Rate* ~18.0% Interest Expense ~$1,450M Corporate Expense and Other Unallocated Items ~$300M FAS/CAS Operating Adjustment ~$1,250M Non-Service Pension Income ~$1,780M Capex Spending ~$2.5B 15 *See Appendix for additional information regarding these non-GAAP
Slide 17: P&W Engine Shipments to Customers
Raytheon Technologies: P&W Engine Shipments to Customers 2022 2023 Q1 Q2 Q3 Q4 FY Q1 Military 60 62 49 48 219 42 Large Commercial1 119 177 192 224 712 167 Pratt & Whitney Canada2 455 459 509 542 1,965 499 1) Large commercial excludes industrial engine shipments 2) Excludes APUs 16
Slide 18: Free Cash Flow Reconciliation
Raytheon Technologies: Free Cash Flow Reconciliation ($ millions) 1Q 2023 Net income from continuing operations 1,481 Depreciation & amortization 1,034 Change in working capital (2,693) Other (685) Cash flow from operations (863) Capital expenditures (520) Free cash flow (1,383) 17
Slide 19: 1Q 2023: Sales Reconciliation
1Q 2023: Raytheon Technologies Sales Reconciliation Total Acquisitions FX / Reported Organic and Other Growth Divestitures Collins Aerospace 16% 17% (1%) - Pratt & Whitney 15% 16% - (1%) RIS 0% 0% - - RMD 4% 5% - (1%) Elims & Other 13% 13% - - Total 10% 10% - - 18
Slide 20: 1Q 2023: Restructuring Costs
1Q 2023: Raytheon Technologies Restructuring Costs ($ millions) 2023 2022 Restructuring impact to: Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Operating profit Collins Aerospace (3) (3) (2) (14) (2) (21) Pratt & Whitney (19) (2) (1) (2) (15) (20) Raytheon Intelligence & Space — — — — — — Raytheo
Slide 21: 2022 Reported to Adjusted
Raytheon Technologies: 2022 Reported to Adjusted ($ millions) Reported Restructuring & net significant and/or non-recurring items 1 Adjusted1 (Unaudited) (Unaudited) Net Sales Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Coll
Slide 22: 2023 Reported to Adjusted
Raytheon Technologies: 2023 Reported to Adjusted Restructuring & ($ millions) net significant and/or non- Reported 1 Adjusted1 (Unaudited) recurring items (Unaudited) Net Sales Q1 2023 Q1 2023 Q1 2023 Collins Aerospace $ 5,581 $ — $ 5,581 Pratt & Whitney 5,230 — 5,230 Raytheon Intelligence & Space 3
Slide 23: Reconciliation of GAAP to Adjusted: Collins Aerospace
Raytheon Technologies: Reconciliation of GAAP to Adjusted Collins Aerospace ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Collins Aerospace Net sales $ 5,581 $ 4,824 $ 5,011 $ 5,100 $ 5,662 $ 20,597 Adjusted net sales $ 5,581 $ 4,824 $ 5,011 $ 5,100 $
Slide 24: Reconciliation of GAAP to Adjusted: Pratt & Whitney
Raytheon Technologies: Reconciliation of GAAP to Adjusted Pratt & Whitney ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Pratt & Whitney Net sales $ 5,230 $ 4,529 $ 4,969 $ 5,380 $ 5,652 $ 20,530 Adjusted net sales $ 5,230 $ 4,529 $ 4,969 $ 5,380 $ 5,6
Slide 25: Reconciliation of GAAP to Adjusted: Raytheon Intelligence & Space
Raytheon Technologies: Reconciliation of GAAP to Adjusted Raytheon Intelligence & Space ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Raytheon Intelligence & Space Net sales $ 3,565 $ 3,572 $ 3,570 $ 3,626 $ 3,544 $ 14,312 Adjusted net sales $ 3,565 $
Slide 26: Reconciliation of GAAP to Adjusted: Raytheon Missiles & Defense
Raytheon Technologies: Reconciliation of GAAP to Adjusted Raytheon Missiles & Defense ($ millions) (Unaudited) (Unaudited) 2023 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Raytheon Missiles & Defense Net sales $ 3,671 $ 3,527 $ 3,558 $ 3,678 $ 4,100 $ 14,863 Adjusted net sales $ 3,671 $ 3,5
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) 2023 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Eliminations and other Net sales $ (833) $ (736) $ (794) $ (833) $ (865) $ (3,228) Operating profit (loss) $ 13 $ (34)
Slide 28: Reconciliation of GAAP to Adjusted: Consolidated Income and EPS
Raytheon Technologies: Reconciliation of GAAP to Adjusted Consolidated Income, Earnings Per Share ($ millions) (Unaudited) (Unaudited) 2023 2022 Income (Expense) Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Income from continuing operations attributable to common shareowners $ 1,426 $ 1,103 $ 1,3