Investor Presentaiton
Free cash flow* performance
90
90
($ in billions)
1Q'22
yly
Net earnings (loss)-a)
(0.7)
(0.8)
•
Depreciation & amortization
1.5
0.7
Operating working capital
(1.0)
(0.1)
•
Current receivables-b)
(0.7)
(1.5)
•
Inventory
(1.0)
(0.3)
Accounts payable
-b)
0.1
0.5
Progress collections
0.2
0.7
Current contract assets
0.4
0.5
O
Other CFOA-b,c)
(0.3)
2.6
1Q'22 DYNAMICS
FCF* improvement y/y, up $1.7B ex disc. factoring* with
majority as a result of debt reduction actions
D&A includes $0.8B Steam asset sale impairment
Working capital use driven by supply constraints & 2H ramp
о
Receivables use, higher AVI services billings, late
deliveries in the quarter
Inventory use, supply chain constraints delaying
shipments coupled with building for 2H volume
Gross CAPEX
(0.4)
(0.0)
о
Progress source, AVI & REN collections
FCF*
(0.9)
2.5
о
Contract assets source, strong utilization billings
FCF ex disc. factoring*d)
(0.9)
1.7
* Non-GAAP Financial Measure
Improved 1Q FCF*, supply chain constraints pressuring working capital
(a-Aggregates the following: Net earnings (loss) and (earnings) loss from discontinued operations
(b - Excludes CFOA impact from receivables factoring and supply chain finance eliminations in the prior year
(c - Includes the following: (Gains) losses on sales of business interests, (Gains) losses on equity securities, principal pension plans (net), other post retirement benefit plans (net), income taxes (net), financial
services derivatives and all other operating; excludes Insurance CFOA and separation cash expenditures
(d - Excludes prior period CFOA impact from discontinued factoring programs of $(0.8)B
5
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