Slide 1: 2nd Quarter 2022 Earnings Conference Call
////////////////// 2nd Quarter 2022 Earnings Conference Call July 28, 2022
Slide 2: Safe Harbor
Safe Harbor ////////////////// Today’s presentation includes forward-looking statements that reflect management’s current expectations about the Company’s future business and financial performance. These statements are subject to certain risks and uncertainties that could cause actual results to dif
Slide 3: Financial Results
Financial Results ////////////////// Statement of Earnings Second Quarter June Year to Date $ in millions except per share amounts 2022 2021 Change 2022 2021 Change Net Sales $ 548.5 $ 507.2 8% $1,042.8 $ 961.3 8% Gross Profit 269.1 263.9 2% 523.5 511.2 2% % of Net Sales 49.0% 52.0% (3.0) pts 50.2%
Slide 4: Net Sales
Net Sales ////////////////// Components of Net Sales Change 2022 Second Quarter Segment Region Industrial Process Contractor Americas EMEA Asia Pacific Consolidated Volume and Price 15 % 27 % 3% 11 % 5% 16 % 11 % Acquisitions 0% 3% 0% 1% 0% 0% 1% Currency (5)% (2)% (3)% 0% (10)% (4)% (4)% Total 10 %
Slide 5: Operating Earnings
Operating Earnings ////////////////// Second Quarter June Year to Date 2021 Operating Earnings, as Reported ($M and % of sales) $ 134 26 % $ 262 27 % Translation effect (9) (1) (14) 0 Product cost, pricing, sales volume 18 (2) 31 (2) Volume effect on expense leverage 6 4 (2) 2 2022 Operating Earning
Slide 6: Second Quarter 2022
Second Quarter 2022 ////////////////// ► Up 8 percent from 2021, up 12 percent at consistent translation Net Sales rates. Sales from acquired businesses contributed 1 percentage point ► Margin rate down 3 percentage points from 2021 Realized pricing not enough to offset the unfavorable impact of h
Slide 7: June Year to Date 2022
June Year to Date 2022 ////////////////// ► Up 8 percent from 2021, up 11 percent at consistent translation Net Sales rates. Acquired businesses had no significant impact ► Margin rate down 3 percentage points from 2021 Realized pricing not enough to offset the unfavorable impact of higher Gross M
Slide 8: Outlook
Outlook ////////////////// Constant currency basis and excluding acquisitions completed in the prior 12 months Americas EMEA Asia Pacific Total Sales Growth Sales Growth Sales Growth Sales Growth Current Q2 2022 11% Q2 2022 5% Q2 2022 16% Q2 2022 11% June 2022 YTD 11% June 2022 YTD 3% June 2022 YTD
Slide 9: Cash Flow and Liquidity
Cash Flow and Liquidity ////////////////// Net Earnings, as Adjusted, and Cash from Operating Activities $ in millions $131 $137 $120 $118 $116 $117 $102 $106 $102 $102 $108 $100 $104 $100 $99 $89 $62 $31 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Net Earnings, as Adjusted Cash from Opera
Slide 10: Other Discussion Items
Other Discussion Items ////////////////// Capital expenditure expectations of approximately $215 million in 2022, Cap Ex including approximately $140 million in facility expansion projects Unallocated corporate expenses in 2022 are expected to be approximately Expenses $27 - $30 million 1.7 million
Slide 11: Industrial Segment Results
Industrial Segment Results ////////////////// $ in millions Second Quarter June Year to Date June YTD 2022 Industrial Segment Net Sales as % of Graco 2022 2021 Change 2022 2021 Change Net Sales Americas $ 61 $ 52 19 % $ 116 $ 98 18 % EMEA 46 46 0 93 91 3 Asia Pacific 51 47 9 94 85 9 Total $ 158 $ 14
Slide 12: Operating Margins
Industrial Segment Results ////////////////// Change in % of net sales Second Quarter June Year to Date 2021 Operating Earnings 32 % 32 % Currency Translation (1) 0 Product cost and product and channel mix (1) (1) Volume effect on expense leverage 5 5 2022 Operating Earnings 35 % 36 % Industrial Seg
Slide 13: Process Segment Results
Process Segment Results ////////////////// $ in millions Second Quarter June Year to Date June YTD 2022 Process Segment Net Sales as % of Graco 2022 2021 Change 2022 2021 Change Net Sales Americas $ 77 $ 60 29 % $ 145 $ 116 25 % EMEA 18 15 12 36 31 14 23% Asia Pacific 30 22 38 59 42 43 Total $ 125 $
Slide 14: Operating Margins
Process Segment Results ////////////////// Change in % of net sales Second Quarter June Year to Date 2021 Operating Earnings 22 % 23 % Currency translation 0 (1) Product cost and product and channel mix (3) (3) Volume effect on expense leverage 6 5 2022 Operating Earnings 25 % 24 % Process Segment N
Slide 15: Contractor Segment Results
Contractor Segment Results ////////////////// $ in millions Second Quarter June Year to Date June YTD 2022 Contractor Segment Net Sales as % of Graco 2022 2021 Change 2022 2021 Change Net Sales Americas $ 200 $ 190 5% $ 370 $ 352 5% EMEA 45 53 (14) 86 103 (16) 48% Asia Pacific 21 23 (7) 44 43 1 Tota
Slide 16: Operating Margins
Contractor Segment Results ////////////////// Change in % of net sales Second Quarter June Year to Date 2021 Operating Earnings 28 % 29 % Currency translation (1) (1) Product cost and product and channel mix (3) (4) Change in sales and earnings-based costs 1 1 Volume effect on expense leverage 1 0 2
Slide 17: Financial Results Adjusted for Comparability
Financial Results Adjusted for Comparability ////////////////// Excess tax benefit from stock option exercises has caused fluctuation in the Company’s financial results. Excluding the impact of this benefit presents a more consistent basis for comparison of financial results. A calculation of the no
Slide 18: Worldwide Leaders in Fluid Handling
MOVE / MEASURE / MIX / CONTROL / DISPENSE / S P R AY WORLDWIDE LEADERS IN FLUID HANDLING www.graco.com