Woodward, Inc. · NASDAQ:WWD

Woodward — Q1 FY2022 Earnings Presentation

19 slides from Woodward's earnings presentation, Jan 31, 2022

  1. Slide 1: Fiscal Year 2022 First Quarter Results

    Fiscal Year 2022 First Quarter Results January 31, 2022

  2. Slide 2: Today's Agenda

    Today’s Agenda  Highlights Dan Provaznik  Market Review Tom Gendron  Financial Results & Outlook Mark Hartman  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 regarding our business and financial outlook for fiscal

  4. Slide 4: Q1 Fiscal Year 2022 Consolidated Results

    Q1 Fiscal Year 2022 Consolidated Results Woodward Sales (mil $) Net Earnings (mil $) 542 538 42 42 36 Reported 30 1 Adjusted Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Free Cash Flow1 (mil $) Earnings Per Share (Fiscal Year-to-Date) 139 139 $0.64 $0.64 Reported Reported $0.56 1 Adjusted Adjusted 1 $0.47 26 27

  5. Slide 5: Summary

    Summary Positive signs of recovery across our markets Shipments impacted by industry-wide COVID-19 related supply chain constraints, labor shortages, and customer-initiated shipment delays Strong financial position  Approximately $1.4B of liquidity: combined cash on hand and revolver capacity  Lev

  6. Slide 6: Aerospace

    Aerospace Commercial OEM  38% sales increase for the quarter versus prior year period  OEM production rates increasing as domestic passenger traffic nears pre-COVID levels, international traffic lagging Commercial aftermarket  31% sales increase for the quarter versus prior year period  Increase

  7. Slide 7: Industrial

    Industrial Power generation  Strong demand for gas turbines primarily on growth in Asia and the replacement of coal powered plants  Strong demand for data center back up power Transportation  Marine markets improving on new ship orders and increased utilization  China natural gas truck market ch

  8. Slide 8: Aerospace Q1 Fiscal Year 2022 Results

    Aerospace Sales (mil $) Aerospace Q1 Fiscal Year 2022 Results Segment net sales 336 322  Higher commercial OEM and aftermarket  Defense OEM down on lower guided weapons  Defense aftermarket impacted by supply chain disruptions Q1 FY22 Q1 FY21 Segment earnings  Higher commercial sales volumes Seg

  9. Slide 9: Industrial Q1 Fiscal Year 2022 Results

    Industrial Sales (mil $) Industrial Q1 Fiscal Year 2022 Results Segment net sales 216 205  Weakness in China natural gas truck engines  Improvements in marine Industrial segment earnings  Lower volumes, product mix, and net inflationary Q1 FY22 Q1 FY21 impacts Segment Earnings (mil $) Segment Mar

  10. Slide 10: Selected Financial Items

    Selected Financial Items Quarter-to-Date Comparatives Q1 FY 22 Q1 FY 21 Gross Margin * 22.6% 25.3% SG&A Expenses - % of Sales 11.5% 10.4% R&D Expenses - % of Sales 4.7% 6.0% Effective Tax Rate 19.7% 12.6% EBITDA1 (mils) $ 76 $ 89 Adjusted EBITDA1 (mils) $ 84 $ 89 Cash from Operations (mils) $ 39 $ 1

  11. Slide 11: Capital Deployment to Stockholders

    Capital Deployment to Stockholders During Q1 FY2022, $37M was returned to “Given our strong financial position stockholders and positive financial outlook, including our ability to generate robust  $10M in dividends cash flow, we remain committed to returning capital to stockholders via  $27M in r

  12. Slide 12: Fiscal Year 2022 Outlook

    Fiscal Year 2022 Outlook COVID-19 related disruptions persisted in the quarter, although improvement is anticipated in the remainder of fiscal year 2022. Woodward Aerospace  Revenue between $2.45 and $2.65 billion  Revenue up low double digits to mid-teens  Adjusted effective tax rate1 ~21%  Mar

  13. Slide 13: Appendix

    W woopwarpD Appendix

  14. Slide 14: Non-U.S. GAAP Measures

    Non-U.S. GAAP Measures Woodward, Inc. and Subsidiaries RECONCILIATION OF EARNINGS TO ADJUSTED EARNINGS1 (Unaudited - in thousands, except per share amounts) Three-Months Ended December 31, 2021 Three-Months Ended December 31, 2020 Earnings Before Earnings Per Earnings Before Earnings Per Income Tax

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

    Non-U.S. GAAP Measures (cont.) Woodward, Inc. and Subsidiaries RECONCILIATION OF NET EARNINGS TO EBIT1 AND ADJUSTED EBIT1 (Unaudited - in thousands) Q1 FY22 Q1 FY21 Net earnings (U.S. GAAP) $ 30,305 $ 41,570 Income taxes 7,441 6,014 Interest expense 8,306 8,906 Interest income (641) (495) EBIT (Non-

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

    Non-U.S. GAAP Measures (cont.) Woodward, Inc. and Subsidiaries RECONCILIATION OF NET EARNINGS TO EBITDA1 AND ADJUSTED EBITDA1 (Unaudited - in thousands) Q1 FY22 Q1 FY21 Net earnings (U.S. GAAP) $ 30,305 $ 41,570 Income taxes 7,441 6,014 Interest expense 8,306 8,906 Interest income (641) (495) Amorti

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

    Non-U.S. GAAP Measures – (cont.) Woodward, Inc. and Subsidiaries RECONCILIATION OF CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW1 (Unaudited - in thousands) YTD FY22 YTD FY21 Net cash provided by operating activities (U.S. GAAP) $ 39,290 $ 146,725 Payments for property, plant, and equipment

  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, and adjusted nonsegment expenses exclude, as applicable, (i) costs related to business development ac

  19. Slide 19: Always Innovating for a Better Future

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

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