Slide 1: Third Quarter 2021 Earnings
Third Quarter 2021 Earnings November 8, 2021 Josef Matosevic – President & CEO Tricia Fulton – Chief Financial Officer Tania Almond – VP, IR, Corp. Comm., & Risk Mgmt. Helios Technologies // Investor Presentation 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and oral statements made by management in connection herewith that are not historical facts are “forward‐looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward‐looking statements involve risks and uncertainties, a
Slide 3: Q3 2021 Business Summary
Q3 2021 Business Summary Delivered OUTSIZED GROWTH by expanding share of current customers, WINNING new customers and DIVERSIFYING MARKETS PROTECTED PROFITABILITY and performed well AGAINST SUPPLY CHAIN and MATERIAL COST HEADWINDS with multiple PRICING STRATEGIES Achieved 30% ORGANIC GROWTH in the q
Slide 4: Q3 2021 Financial Results Highlights
Q3 2021 Financial Results Highlights ($ in millions, except per share data) 82% $223.2 YoY 36.2% 210 bps YoY Sales Gross Margin Unchanged QoQ 60 bps QoQ 330 bps 320 bps 18.2% YoY 22.5% YoY Operating Margin Adj. Operating Margin(1) 60 bps QoQ 70 bps QoQ (1) Reflects a non-GAAP financial measure; see
Slide 5: Q3 2021 Financial Results Highlights
Q3 2021 Financial Results Highlights ($ in millions, except per share data) 114% 102% $27.8 YoY $1.07 YoY Net Income Non-GAAP Cash EPS(2) 9% QoQ 11% QoQ Sales 170 bps 25.1% YoY • Organic growth of 30% in the quarter driven by high demand, operational flexibility and new products • Strong demand acro
Slide 6: Q3 2021 – Consolidated Results
Q3 2021 – Consolidated Results Sales Gross Profit & Margin(1) ($ millions) ($ millions) $223.4 $223.2 $82.2 $80.9 $204.8 $75.4 $151.6 $90.4 $89.8 $52.7 $85.7 $46.9 $122.6 $48.5 $24.4 $119.1 $133.0 $133.4 $98.2 $103.1 38.3% 34.8% 36.8% 36.8% 36.2% Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q3 20 Q4 20 Q1 21 Q2 21
Slide 7: Q3 2021 – Consolidated Results
Q3 2021 – Consolidated Results Adj. EBITDA Margin(1) Gross Profit & Margin • Gross profit grew from higher volumes 25.7% 25.1% 25.1% • Gross margin impacted by difference of Balboa acquisition 23.4% 23.2% product profile, supply chain challenges and increased raw material and freight costs • Offsets
Slide 8: Q3 2021 – Hydraulics Segment
Q3 2021 – Hydraulics Segment Q3 Sales by Region Third Quarter Highlights 32% Sales Drivers APAC • Higher sales in all regions driven by demand from U.S. and 34% European agriculture and construction equipment markets as Americas $133m well as mobile and industrial equipment markets; contributions fr
Slide 9: Q3 2021 – Electronics Segment
Q3 2021 – Electronics Segment Q3 Sales by Region Third Quarter Highlights 12% Sales Drivers EMEA 72% • Contributions from acquisitions of $59.0 million as well as strong demand in health & wellness and recreational markets 16% Americas $90m drove 268% revenue growth despite supply chain constraints
Slide 10: Strong Cash Flow
Strong Cash Flow Free Cash Flow(1) Three Months Ended YTD ($ millions) 10/2/21 9/26/20 10/2/21 9/26/20 204% Net cash provided by 103% 32.5 36.7 82.0 77.0 126% operating activities $94.0 $89.0 CapEx (6.7) (1.9) (17.1) (7.2) $76.2 105% Free cash flow (FCF)(1) $25.7 $34.8 $64.9 $69.9 86% $49.1 Note: Co
Slide 11: Capital Structure
Capital Structure Capitalization Financial flexibility • Generated $32 million of operating cash flow in Q3 10/2/21 1/2/21 • Improved net debt/pro forma Adjusted EBITDA: to long- Cash and cash equivalents $47.7 $25.2 (2) (2) term target level of 2.0x from 3.0x at the end of 2020 Total debt 471.2 462
Slide 12: 2021 Outlook
2021 Outlook P revious 2 0 2 1 % Change at Guidanc e provided on Updated 2 0 2 1 Mid-P oint from 8 /9 /2 1 Guidanc e P revious Guidanc e Consolidated revenue $800 - $830 million $840 - $860 million 4% Adjusted EBITDA $188 - $203 million $197 - $211 million 4% Adjusted EBITDA margin 23.5% - 24.5% 23.
Slide 13: Supplemental Information
Supplemental Information Helios Technologies // Investor Presentation 13
Slide 14: Segment Data
Segment Data Three Months Ended Nine Months Ended (Unaudited) October 2, September 26, October 2, September 26, ($ in thousands) 2021 2020 2021 2020 Sales: Hydraulics $ 133,404 $ 98,206 $ 385,549 $ 304,113 Electronics 89,837 24,439 265,950 67,309 Consolidated $ 223,241 $ 122,645 $ 651,499 $ 371,422
Slide 15: Organic and Acquired Sales
Organic and Acquired Sales Three Months Ended Full Year Ended Three Months Ended Nine Months Ended March 28, June 27, September 26, January 2, January 2, April 3, July 3, October 2, October 2, (Unaudited) 2020 2020 2020 2021 2021 2021 2021 2021 2021 Hydraulics Organic $ 103,818 $ 102,089 $ 98,206 $
Slide 16: Sales by Geographic Region & Segment
Sales by Geographic Region & Segment (Unaudited) 2020 Sales by Geographic Region and Segment 2021 Sales by Geographic Region and Segment ($ in millions) ($ in millions) % Change % Change % Change % Change % Change % Change % Change % Change % Change Q1 Q2 Q3 Q4 YTD 2020 Q1 Q2 Q3 YTD 2021 y/y y/y y/y
Slide 17: Adjusted Operating Income Reconciliation
Adjusted Operating Income Reconciliation (Unaudited) Three Months Ended Nine Months Ended ($ in thousands) October 2, September 26, October 2, September 26, 2021 2020 2021 2020 GAAP operating income $ 40,749 $ 18,343 $ 117,421 $ 25,012 Acquisition-related amortization of intangible assets 7,407 4,55
Slide 18: Non-GAAP Cash Net Income Reconciliation
Non-GAAP Cash Net Income Reconciliation (Unaudited) Three Months Ended Nine Months Ended ($ in thousands) October 2, September 26, October 2, September 26, 2021 2020 2021 2020 Net income $ 27,760 $ 12,982 $ 81,042 $ 8,667 Amortization of intangible assets 7,487 4,558 25,431 13,323 Acquisition and fi
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (Unaudited) Twelve Months Three Months Ended Nine Months Ended Ended ($ in thousands) October 2, September 26, October 2, September 26, October 2, 2021 2020 2021 2020 2021 Net income $ 27,760 $ 12,982 $ 81,042 $ 8,667 $ 86,592 Interest expense, net 3,813 2,730 12,965 8
Slide 20: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (Unaudited) ($ in thousands) 2017 2018 2019 2020 Q3 2021 TTM Net cash provided by operating activities $ 49,382 $ 77,450 $ 90,480 $ 108,556 $ 113,514 Contingent consideration payment in excess of acquisition date fair value - - 10,731 - - Adjusted net cash provided by o
Slide 21: Net Debt to Adjusted EBITDA Reconciliation
Net Debt to Adjusted EBITDA Reconciliation As of (Unaudited) October 2, ($ in thousands) 2021 Current portion of long-term non-revolving debt, net $ 15,368 Revolving lines of credit 277,347 Long-term non-revolving debt, net 178,534 Total debt 471,249 Less: Cash and cash equivalents 47,687 Net debt $
Slide 22: Helios Technologies // Investor Presentation 22
Helios Technologies // Investor Presentation 22
Slide 23: Third Quarter 2021 Earnings
Third Quarter 2021 Earnings November 8, 2021 Josef Matosevic – President & CEO Tricia Fulton – Chief Financial Officer Tania Almond – VP, IR, Corp. Comm., & Risk Mgmt. Helios Technologies // Investor Presentation 23