Slide 1: 1Q 2022 Earnings Conference Call
1Q 2022 Earnings Conference Call April 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: 1Q 2022 Highlights
1Q 2022 Highlights Sales up 4% organically with 220 bps of adjusted segment Full Year Outlook margin expansion* Sales $67.75B - $68.75B Prior: $68.5B - $69.5B Adjusted EPS* up 28% versus prior year Organic sales growth %* 6% - 8% Prior: 7% - 9% Commercial aftermarket sales up 38% year-over-year Adju
Slide 4: 1Q 2022 EPS, Sales and Cash Flow
1Q 2022 Sales EPS Cash Flow from continuing operations GAAP Adjusted* 4% organic Up 45% Up 28% growth* $1.15 $15.7B $15.3B $0.90 $476M ($439M) $0.74 $0.51 $37M 2021 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022 Cash Flow CapEx Free Cash from continuing operations 2021 2022 Flow* Excludes: Acq. Accounting Adj
Slide 5: Collins Aerospace Segment Highlights
Collins Aerospace Segment Highlights 1Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 4,824 4,824 10% Operating Profit 440 584 76% ROS 9.1% 12.1% 450 bps • Organic sales* up 11% • Adjusted sales* up 10% – Commercial aftermarket up 39% – Commercial OE up 12% – Military down 12% Collins Aerospa
Slide 6: Pratt & Whitney Segment Highlights
Pratt & Whitney Segment Highlights 1Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 4,529 4,529 12% Operating Profit 151 308 670% ROS 3.3% 6.8% 580 bps • Organic sales* up 13% • Adjusted sales* up 12% – Commercial aftermarket up 37% – Commercial OE up 12% – Military down 11% • Adjusted operat
Slide 7: Raytheon Intelligence & Space Segment Highlights
Raytheon Intelligence & Space Segment Highlights 1Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 3,572 3,572 (5%) Operating Profit 378 378 (3%) ROS 10.6% 10.6% 30 bps • Organic sales* in-line with prior year • Adjusted sales* down 5% – Global Training and Services divestiture • Adjusted oper
Slide 8: Raytheon Missiles & Defense Segment Highlights
Raytheon Missiles & Defense Segment Highlights 1Q 2022 ($ millions) Reported Adjusted* YOY Var.* Sales 3,527 3,527 (7%) Operating Profit 387 387 (22%) ROS 11.0% 11.0% (210) bps • Organic sales* down 7% • Adjusted sales* down 7% – Continuing supply chain constraints – Declines in Land Warfare and Air
Slide 9: 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 Global sanctions Cost reduction / synergies 8
Slide 10: 2022 Outlook
2022 Outlook 1Q Actual Full Year Outlook Sales $15.7B $67.75B - $68.75B Prior: $68.5B - $69.5B Organic sales growth%* 4% 6% - 8% Prior: 7% - 9% Adjusted EPS* $1.15 $4.60 - $4.80 Free cash flow*,1 $37M ~ $6.0B 1) Free cash flow outlook assumes the legislation requiring R&D capitalization for tax purp
Slide 11: 2022 Priorities
2022 Priorities Continued support of employees, customers and suppliers Invest in technology and product innovation to drive industry leadership Deliver RTX synergies Drive structural cost reduction Disciplined capital deployment Focused on delivering on our long-term commitments 10
Slide 12: © 2022 Raytheon Technologies All rights reserved
© 2022 Raytheon Technologies All rights reserved
Slide 13: Appendix
a Appendix SZ Raytheon 12 anf Technologies
Slide 14: Use and Definitions of Non-GAAP Financial Measures
Use and Definitions of Non-GAAP Financial Measures Raytheon Technologies Corporation (“RTC”) reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). We supplement the reporting of our financial information determined under GAAP with ce
Slide 15: 2022 Segment Outlook
2022 Segment Outlook ($ millions) Adjusted Reported Sales Organic Sales Operating VPY % VPY % Profit VPY Collins Aerospace Current Up low double digits Up low double digits $650 - $800 Current Up high single to Up high single to $500 - $600 Pratt & Whitney low double digits low double digits Prior U
Slide 16: Additional 2022 Items
Additional 2022 Items FY 2022 ,1 Adjusted Tax Rate* 18.5% - 19% Interest Expense ~$1,300M Corporate Expense and Other Unallocated Items $375M - $400M FAS/CAS Operating Adjustment ~$1,500M Non-Service Pension Income ~$1,875M Capex Spending ~$2.5B 1) Assumes the legislation requiring R&D capitalizatio
Slide 17: 2022 Trends
2022 Trends Sequential 1Q Commercial Pratt & Whitney Active 1Q Book-to-Bill Ratio Aftermarket Growth Engines A320 V2500 5% A320 GTF A220 90% 86% 86% 87% 88% 86% 83% 84% 70% 70% 1.18 68% 67% 0.80 (4%) RIS RMD Collins Pratt & 2Q '21 3Q '21 4Q '21 1Q '22 Whitney Active is defined as engines with flight
Slide 18: P&W Engine Shipments to Customers
Raytheon Technologies: P&W Engine Shipments to Customers 2021 2022 Q1 Q2 Q3 Q4 FY Q1 Military 44 61 58 55 218 60 Large Commercial1 137 144 165 177 623 119 Pratt & Whitney Canada2 396 467 475 487 1,825 455 1) Large commercial excludes industrial engine shipments 2) Excludes APUs 17
Slide 19: Free Cash Flow Reconciliation
Raytheon Technologies: Free Cash Flow Reconciliation ($ millions) 1Q 2022 Net income from continuing operations 1,126 Depreciation & amortization 1,014 Change in working capital (897) Other (767) Cash flow from operations 476 Capital expenditures (439) Free cash flow 37 18
Slide 20: 1Q 2022 Sales Reconciliation
1Q 2022: Raytheon Technologies Sales Reconciliation Total Acquisitions Reported Organic and Other1 Growth Divestitures Collins Aerospace 10% 11% - (1%) Pratt & Whitney 12% 13% - (1%) RIS (5%) - (5%) - RMD (7%) (7%) - - Elims & Other 4% 4% - - Total 3% 4% (1%) - 19 1) Includes the impact of foreign c
Slide 21: 1Q 2022 Restructuring Costs
1Q 2022: Raytheon Technologies Restructuring Costs ($ millions) 20
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 Restructuring & ($ millions) Significant non- recurring and non- Reported Adjusted1 (Unaudited) operational items1 (Unaudited) Net Sales Q1 2022 Q1 2022 Q1 2022 Collins Aerospace Systems $ 4,824 $ - $ 4,824 Pratt & Whitney 4,529 - 4,529 Raytheon Intel
Slide 24: Reconciliation of GAAP to Adjusted: Collins Aerospace
Raytheon Technologies: Reconciliation of GAAP to Adjusted Collins Aerospace Systems ($ millions) (Unaudited) (Unaudited) 2022 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Collins Aerospace Systems Net sales $ 4,824 $ 4,370 $ 4,545 $ 4,592 $ 4,942 $ 18,449 Adjusted net sales $ 4,824 $ 4,370 $
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 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Pratt & Whitney Net sales $ 4,529 $ 4,030 $ 4,280 $ 4,725 $ 5,115 $ 18,150 Adjusted net sales $ 4,529 $ 4,030 $ 4,280 $ 4,725 $ 5,1
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 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Raytheon Intelligence & Space Net sales $ 3,572 $ 3,765 $ 3,805 $ 3,740 $ 3,870 $ 15,180 Adjusted net sales $ 3,572 $
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 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Raytheon Missiles & Defense Net sales $ 3,527 $ 3,793 $ 3,985 $ 3,902 $ 3,859 $ 15,539 Adjusted net sales $ 3,527 $ 3,7
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 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Eliminations and other Net sales $ (736) $ (707) $ (735) $ (746) $ (742) $ (2,930) Operating loss $ (34) $ (31) $ (40)
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 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Income from continuing operations attributable to common shareowners $ 1,103 $ 772 $ 1,040