Slide 1: 2Q 2022 Earnings Conference Call
2Q 2022 Earnings Conference Call July 26, 2022 © 2022 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 webcast contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the secur
Slide 3: 2Q 2022 Highlights
2Q 2022 Highlights Full Year Outlook Sales up 4% organically* versus prior year Sales $67.75B - $68.75B Adjusted EPS* up 13% versus prior year Organic sales growth %* 6% - 8% Commercial aftermarket sales up 26% versus prior year Adjusted EPS* $4.60 - $4.80 Received over $24B of total awards in Q2; 1
Slide 4: 2Q 2022 EPS Sales
2Q 2022 Sales EPS Cash Flow from continuing operations GAAP Adjusted* 4% organic Up 28% Up 13% growth* $1.3B ($0.5B) $1.16 $16.3B $15.9B $1.03 $0.88 $0.8B $0.69 2021 2022 2Q 2021 2Q 2022 2Q 2021 2Q 2022 Cash Flow CapEx Free Cash from continuing operations 2021 2022 Flow* Excludes: Acq. Accounting Ad
Slide 5: 2022 Environment
2022 Environment Positives Monitoring Challenges Commercial aero aftermarket International travel recovery Supply chain / inflation Narrowbody deliveries Global tax environment Labor availability Global defense spending Geopolitical landscape Global sanctions Cost reduction / synergies 4
Slide 6: 2022 Outlook
2022 Outlook Full Year Outlook Sales $67.75B - $68.75B Organic sales growth%* 6% - 8% Adjusted EPS* $4.60 - $4.80 Free cash flow*,1 ~ $6.0B 1) Free cash flow outlook assumes the legislation requiring R&D capitalization for tax purposes is deferred beyond 2022. 5 *See Appendix for additional informat
Slide 7: 2022 Segment Outlook
2022 Segment Outlook ($ millions) Adjusted Reported Sales Organic Sales Operating VPY % VPY %* Profit VPY* Current Up low double digits Up low double digits $700 - $825 Collins Aerospace Prior $650 - $800 Current Up low teens Up low teens $550 - $650 Pratt & Whitney Prior Up high single to low doubl
Slide 8: Collins Aerospace Segment Highlights
Collins Aerospace Segment Highlights 2Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 5,011 5,011 10% Operating Profit 546 617 19% ROS 10.9% 12.3% 90 bps • Organic sales* up 11% • Adjusted sales* up 10% – Commercial aftermarket up 25% – Commercial OE up 14% – Military down 6% Collins Aerospac
Slide 9: Pratt & Whitney Segment Highlights
Pratt & Whitney Segment Highlights 2Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 4,969 4,969 16% Operating Profit 302 303 216% ROS 6.1% 6.1% 390 bps • Organic sales* up 17% • Adjusted sales* up 16% – Commercial aftermarket up 26% – Commercial OE up 22% – Military up 5% The F-35 Lightning I
Slide 10: Raytheon Intelligence & Space Segment Highlights
Raytheon Intelligence & Space Segment Highlights 2Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 3,570 3,570 (6%) Operating Profit 315 315 (24%) ROS 8.8% 8.8% (210) bps • Organic sales* down 1% • Adjusted sales* down 6% – Global Training and Services divestiture • Adjusted operating profit*
Slide 11: Raytheon Missiles & Defense Segment Highlights
Raytheon Missiles & Defense Segment Highlights 2Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 3,558 3,558 (11%) Operating Profit 348 348 (35%) ROS 9.8% 9.8% (360) bps • Organic sales* down 10% • Adjusted sales* down 11% – Continuing supply chain constraints – Expected declines in Land Warfa
Slide 12: 2022 Priorities
2022 Priorities Continued support of employees, customers and suppliers Invest in technology and product innovation to drive industry leadership Deliver RTX synergies Drive structural cost reduction Disciplined capital deployment Focused on delivering on our long-term commitments 11
Slide 13: © 2022 Raytheon Technologies All rights reserved
© 2022 Raytheon Technologies All rights reserved
Slide 14: Appendix
a Appendix SZ Raytheon 13 anf Technologies
Slide 15: 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 16: Additional 2022 Outlook Items
Additional 2022 Outlook Items FY 2022 FY 2022 Prior Current ,1 Adjusted Tax Rate* 18.5% - 19% 18.0% - 18.5% Interest Expense ~$1,300M ~$1,300M Corporate Expense and Other Unallocated Items $375M - $400M ~$325M FAS/CAS Operating Adjustment ~$1,500M ~$1,500M Non-Service Pension Income ~$1,875M ~$1,875
Slide 17: 2022 Trends
2022 Trends 2Q Sequential Commercial Pratt & Whitney Active YTD Book-to-Bill Ratio Aftermarket Growth Engines A320 V2500 A320 GTF A220 3% 90% 87% 88% 86% 85% 84% 83% 84% 79% 1.24 70% 70% 67% 0.86 (3%) RIS RMD Collins Pratt & 3Q '21 4Q '21 1Q '22 2Q '22 Whitney Active is defined as engines with fligh
Slide 18: P&W Engine Shipments to Customers
Raytheon Technologies: P&W Engine Shipments to Customers 2021 2022 Q1 Q2 Q3 Q4 FY Q1 Q2 Military 44 61 58 55 218 60 62 Large Commercial1 137 144 165 177 623 119 177 Pratt & Whitney Canada2 396 467 475 487 1,825 455 459 1) Large commercial excludes industrial engine shipments 2) Excludes APUs 17
Slide 19: Free Cash Flow Reconciliation
Raytheon Technologies: Free Cash Flow Reconciliation ($ millions) 2Q 2022 Net income from continuing operations 1,338 Depreciation & amortization 999 Change in working capital (4) Other (1,047) Cash flow from operations 1,286 Capital expenditures (479) Free cash flow 807 18
Slide 20: 2Q 2022: Raytheon Technologies Sales Reconciliation
2Q 2022: Raytheon Technologies Sales Reconciliation Total Acquisitions Reported Organic and Other1 Growth Divestitures Collins Aerospace 10% 11% - (1%) Pratt & Whitney 16% 17% - (1%) RIS (6%) (1%) (5%) - RMD (11%) (10%) - (1%) Elims & Other 8% 8% - - Total 3% 4% (1%) - 19 1) Includes the impact of f
Slide 21: 2Q 2022: Raytheon Technologies Restructuring Costs
2Q 2022: Raytheon Technologies Restructuring Costs ($ millions) 2022 2021 Q2 YTD Restructuring impact to: Q1 2022 Q2 2022 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Operating profit Collins Aerospace Systems (3) (2) (5) (18) (12) (2) (8) (40) Pratt & Whitney (2) (1) (3) (20) 16 (2) (1) (7) Raytheo
Slide 22: 2021 Reported to Adjusted
Raytheon Technologies: 2021 Reported to Adjusted ($ millions) Restructuring & Significant non-recurring and non- Reported operational items 1 Adjusted1 (Unaudited) (Unaudited) Net Sales Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY
Slide 23: 2022 Reported to Adjusted
Raytheon Technologies: 2022 Reported to Adjusted ($ millions) Restructuring & Significant non-recurring and non- 1 operational items Reported Adjusted1 (Unaudited) (Unaudited) Net Sales Q1 2022 Q2 2022 Q2 YTD 2022 Q1 2022 Q2 2022 Q2 YTD 2022 Q1 2022 Q2 2022 Q2 YTD 2022 Collins Aerospace Systems $ 4,
Slide 24: Reconciliation of GAAP to Adjusted: Collins Aerospace Systems
Raytheon Technologies: Reconciliation of GAAP to Adjusted Collins Aerospace Systems ($ millions) (Unaudited) (Unaudited) 2022 2021 Q1 2022 Q2 2022 Q2 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Collins Aerospace Systems Net sales $ 4,824 $ 5,011 $ 9,835 $ 4,370 $ 4,545 $ 4,592 $ 4,942 $ 18,449
Slide 25: Reconciliation of GAAP to Adjusted: Pratt & Whitney
Raytheon Technologies: Reconciliation of GAAP to Adjusted Pratt & Whitney ($ millions) (Unaudited) (Unaudited) 2022 2021 Q1 2022 Q2 2022 Q2 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Pratt & Whitney Net sales $ 4,529 $ 4,969 $ 9,498 $ 4,030 $ 4,280 $ 4,725 $ 5,115 $ 18,150 Adjusted net sales $
Slide 26: Reconciliation of GAAP to Adjusted: Raytheon Intelligence & Space
Raytheon Technologies: Reconciliation of GAAP to Adjusted Raytheon Intelligence & Space ($ millions) (Unaudited) (Unaudited) 2022 2021 Q1 2022 Q2 2022 Q2 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Raytheon Intelligence & Space Net sales $ 3,572 $ 3,570 $ 7,142 $ 3,765 $ 3,805 $ 3,740 $ 3,870 $
Slide 27: Reconciliation of GAAP to Adjusted: Raytheon Missiles & Defense
Raytheon Technologies: Reconciliation of GAAP to Adjusted Raytheon Missiles & Defense ($ millions) (Unaudited) (Unaudited) 2022 2021 Q1 2022 Q2 2022 Q2 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Raytheon Missiles & Defense Net sales $ 3,527 $ 3,558 $ 7,085 $ 3,793 $ 3,985 $ 3,902 $ 3,859 $ 15,
Slide 28: Reconciliation of GAAP to Adjusted: Non-Segment Operating Profit
Raytheon Technologies: Reconciliation of GAAP to Adjusted Non-Segment Operating Profit ($ millions) (Unaudited) (Unaudited) 2022 2021 Q1 2022 Q2 2022 Q2 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Eliminations and other Net sales $ (736) $ (794) $ (1,530) $ (707) $ (735) $ (746) $ (742) $ (2,93
Slide 29: Reconciliation of GAAP to Adjusted: Consolidated Income, EPS
Raytheon Technologies: Reconciliation of GAAP to Adjusted Consolidated Income, Earnings Per Share ($ millions) (Unaudited) (Unaudited) 2022 2021 Income (Expense) Q1 2022 Q2 2022 Q2 YTD 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Income from continuing operations attributable to common shareowners $