Woodward, Inc. · NASDAQ:WWD

Woodward — Q3 FY2020 Earnings Presentation

17 slides from Woodward's earnings presentation, Aug 6, 2020

  1. Slide 1: Fiscal Year 2020 Third Quarter Results

    Fiscal Year 2020 Third Quarter Results August 6, 2020

  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 regarding our position within our markets and ability t

  4. Slide 4: Q3 Fiscal Year 2020 Consolidated Results

    Q3 Fiscal Year 2020 Consolidated Results Woodward Sales (mil $) Net Earnings (mil $) 752 Q3 FY20 84 524 Q3 FY19 66 Reported Adjusted 38 31 Q3 FY20 Q3 FY19 Free Cash Flow1 (mil $) Earnings Per Share (Fiscal Year-to-Date 2020) 173 169 $1.30 Reported $1.02 Reported Adjusted Adjusted 141 141 $0.61 $0.48

  5. Slide 5: Taking Decisive Actions

    Taking Decisive Actions Focused on the safety of our members and communities while maintaining financial strength Communicating daily, both internally as well as externally with suppliers and customers Proactively revising demand and supply plans in accordance with changing market conditions Strateg

  6. Slide 6: Aerospace

    Aerospace Commercial aerospace significantly impacted by COVID-19  Global flight hours declined as much as 80% on some platforms  Flight traffic has begun a slow increase off the bottom and OEM production rates are slowly stabilizing  Anticipate slow recovery in commercial aerospace over the next

  7. Slide 7: Industrial

    Industrial Power generation  On April 30th, we closed on the divestiture of our renewable power systems and related businesses (RPS)  Gas turbine scheduled deliveries largely unchanged for 2020  Impact of downturns on gas turbines lags general market – expect lower 2021 Transportation  China nat

  8. Slide 8: Aerospace Q3 Fiscal Year 2020 Results

    Aerospace Q3 Fiscal Year 2020 Results Segment Earnings (mil $) Segment net sales  Lower commercial aftermarket and reduced OEM production 103  Partially offset by higher defense aftermarket Q3 FY20 Q3 FY19 Segment earnings 41  Lower sales volume  Partially offset by cost reduction initiatives Ae

  9. Slide 9: Industrial Q3 Fiscal Year 2020 Results

    Industrial Q3 Fiscal Year 2020 Results Segment Margin % Segment Net Sales 12.6%  Economic headwinds impacting our markets  Weakness in oil and gas 11.4% Reported  Divestiture of RPS Adjusted 10.4% Industrial Segment Earnings  Lower sales volume  Partially offset by cost reduction initiatives Q3

  10. Slide 10: Selected Financial Items

    Selected Financial Items Quarter and Year-to-Date Comparatives Q3 FY 20 Q3 FY 19 YTD FY 20 YTD FY 19 Gross Margin * 24.5% 25.2% 26.3% 25.1% SG&A Expenses - % of Sales 11.0% 7.0% 9.0% 7.4% R&D Expenses - % of Sales 6.6% 5.4% 5.4% 5.7% Effective Tax Rate 14.6% 28.4% 14.3% 21.0% EBITDA1 (mils) $ 85 $ 1

  11. Slide 11: Fiscal Year 2020 Outlook

    Fiscal Year 2020 Outlook The global economic effects associated with the COVID-19 pandemic have been unprecedented in their scope and depth. We continue to see severe volatility in our markets making even short-term forecasts challenging. With that uncertainty, we will not be providing specific fina

  12. Slide 12: Appendix

    W woopwarD Appendix

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

    Non-U.S. GAAP Measures Q3 FY 20 Q3 FY 19 Earnings Per Earnings Per Net Earnings Share Net Earnings Share Q3 FY 20 Q3 FY 19 YTD FY 20 YTD FY 19 (mils) (mils) (mils) (mils) (mils) (mils) (mils) (mils) Net Earnings $ 38.5 $ 0.61 $ 66.1 $ 1.02 Industrial segment net sales $ 217.3 $ 253.2 $ 709.7 $ 789.0

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

    Non-U.S. GAAP Measures (cont.) Q3 FY 20 Q3 FY 19 YTD FY 20 YTD FY 19 (mils) (mils) (mils) (mils) Net Earnings $ 38.5 $ 66.1 $ 183.2 $ 192.8 Income Taxes 6.6 26.2 30.6 51.2 Interest Expense 8.7 10.8 26.5 34.2 Interest Income (0.4) (0.3) (1.3) (1.0) EBIT1 53.4 102.8 238.9 277.1 Non U.S. GAAP adjustmen

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

    Non-U.S. GAAP Measures (cont.) Q3 FY 20 Q3 FY 19 YTD FY 20 YTD FY 19 (mils) (mils) (mils) (mils) Net Earnings $ 38.5 $ 66.1 $ 183.2 $ 192.8 Income Taxes 6.6 26.2 30.6 51.2 Interest Expense 8.7 10.8 26.5 34.2 Interest Income (0.4) (0.3) (1.3) (1.0) EBIT1 53.4 102.8 238.9 277.1 Amortization of Intangi

  16. Slide 16: 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 Industrial segment earnings, adjusted EBIT and EBITDA, adjusted effective tax rate, and adjusted nonsegment expenses exclude, as applicable, (i) the gain

  17. Slide 17: ALWAYS INNOVATING FOR A BETTER FUTURE

    ALWAYS INNOVATING FOR A BETTER FUTURE 17 | © WOODWARD, INC. PROPRIETARY

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