Slide 1: Earnings Conference Call Second Quarter 2021
July 20, 2021 – 9:00am CT Earnings Conference Call Second Quarter 2021
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures We want to remind everyone that our comments may contain forward-looking statements that are inherently subject to uncertainties and risks, including the impacts of the novel coronavirus (COVID-19) on the global economy and on our customers, suppliers
Slide 3: Q2 2021 Highlights
Q2 2021 Highlights Revenue +36% Y-o-Y at $2.0B Backlog(2) +69% Y-o-Y growth rate +30% organic(1) $ Billions 2.6 Growth in all segments (sequentially and Y-o-Y) 2.2 Bookings(2) +68% Y-o-Y to $2.4B 1.5 1.4 +61% organic(2) Book-to-bill(2): 1.17, >1 across all segments Jun-19 Jun-20 Mar-21 Jun-21 Segmen
Slide 4: Summary Corporate Q2 Results
Summary Corporate Q2 Results Q2 2021 Highlights and Comments Revenue change All-in +36% Y-o-Y growth in all segments (Y-o-Y) Organic(1) +30% Q2 FX impact: +5%; acquisitions +1% Bookings change All-in(2) +68% Q2 book-to-bill(2): 1.17; bookings up Y-o-Y in all five segments (Y-o-Y) Organic(2) +6
Slide 5: Segment Results
Segment Results Q2 2021(1) Organic Revenue ($M) Adj. EBIT Revenue Segment / Organic % / bps ∆ Performance Commentary Change Change % Y-o-Y Q2’21 vs. ’19 Top line strength in vehicle aftermarket, industrial automation, and aerospace & $442 15.2% defense; recovery in industrial winches; waste handli
Slide 6: Revenue & Bookings
Revenue & Bookings Q2 2021 Revenue Change in Organic Revenue(1): +$445M, or +29.7% ’21 Organic Rev Growth(1) Q2 YTD ($M) 1,499 87 81 46 104 128 68 19 2,032 US 54% 25% 15% Q2 2020 DEP DFS DII DPPS DRFE FX ACQ./ Q2 2021 DISP. (2) Organic Q2 2021 Bookings(4) Change in Organic Bookings(4): +$865M, or +6
Slide 7: Q2 2021 Adjusted Segment EBIT and Adjusted Net Earnings
Q2 2021 Adjusted Segment EBIT and Adjusted Net Earnings Change in Adjusted Segment EBIT (3) +$173M 23.0% 19.7% 19.5% +350 bps 15.2% 228 65 293 15 34 23 67 34 467 -67 400 ($M) ADJ. EBIT D&A (1) ADJ. EBITDA DEP DFS DII DPPS DRFE ADJ. EBITDA D&A (2) ADJ. EBIT Q2 2020 Q2 2021 Change in Adjusted Net Earn
Slide 8: YTD 2021 Free Cash Flow
YTD 2021 Free Cash Flow $M YTD ’21 YTD ’20 ∆ Net earnings 497 301 +196 D&A 145 136 +9 Adjustment for gain on disposition - (6) +6 Change in working capital (188) (101) -87 Change in other(1) (17) 17 -35 Cash flow from operations 437 348 +89 Capex (73) (79) +6 Free cash flow(2) 364 269 +96 FCF % of r
Slide 9: H2 Outlook for Key Performance Drivers
H2 Outlook for Key Performance Drivers Market / Price – Segment Operations1 Mix H2 2021 Comments Demand Cost Robust backlogs in vehicle aftermarket and waste handling DEP Largest materials cost headwind in the portfolio Supply chain and hiring constraints US EMV headwind; growth in software/
Slide 10: Capital Deployment Update
Capital Deployment Update Select Capex Projects Acquisitions ESG Productivity Paint line upgrade DEP Safety Floor plan optimization VSG Global product platform Secure wireless DFS DFS Efficiency Digital harmonization communications Brand protection and Capacity India facility consolidati
Slide 11: FY2021 Guidance Update
FY2021 Guidance Update Post-Q1 Guide Revised Guide All-in Revenue 10-12% +5 ppt 15-17% Growth GAAP $5.92 - $6.02 $6.45 - $6.55 EPS +$0.55 Adj.(1) $6.75 - $6.85 $7.30 - $7.40 Tax rate 21% - 22% No change FCF(1) % of +1 ppt 11% - 13% 12% - 14% Revenue Capex ~$175 – 200 million No change Revenue and Ad
Slide 12: Appendix
Appendix 12
Slide 13: Organic Revenue and Bookings Bridges
Organic Revenue and Bookings Bridges Q2 2021 Organic Growth Revenue Bookings Organic Engineered Products 25.4% 73.5% Fueling Solutions 24.9% 33.5% Imaging & Identification 20.2% 26.6% Pumps & Process Solutions 33.6% 81.7% Refrigeration & Food Equipment 43.5% 83.1% Total Organic 29.7% 61.2% Acquisiti
Slide 14: Q2 2020 to Q2 2021 Revenue and Bookings Bridges by Segment
Q2 2020 to Q2 2021 Revenue and Bookings Bridges by Segment Revenue Bridge by Segment ($ in millions) DEP DFS DII DPPS DRFE Total Q2 2020 Revenue 342 326 228 309 294 1,499 Organic Growth 87 81 46 104 128 445 FX 13 15 17 14 9 68 Acquisitions / Dispositions - 14 3 2 - 19 Q2 2021 Revenue 442 437 294 429
Slide 15: Organic Revenue Growth and Q2 2021 vs. Q2 2019 Comparison
Organic Revenue Growth and Q2 2021 vs. Q2 2019 Comparison Segment Growth Factors Q2 Organic Growth Q2 '21 vs. Q2 '19 2020 2021 Organic Growth Organic Engineered Products -20.1% 25.4% 0.3% Fueling Solutions -14.8% 24.9% 6.4% Imaging & Identification -14.0% 20.2% 3.3% Pumps & Process Solutions -8.8% 3
Slide 16: Reconciliation of Q2 2021 Net Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q2 2021 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q2 2021 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 442 437 294 429 431 2,032 Net earnings - - - - - 265 Add back: Corporate expense - - - - - 41 Interest
Slide 17: Reconciliation of Q2 2020 Net Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q2 2020 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q2 2020 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 342 326 228 309 294 1,499 Net earnings - - - - - 125 Add back: Corporate expense - - - - - 27 Interest
Slide 18: Reconciliation of Adjusted Net Earnings to Net Earnings and Adjusted Diluted EPS
Reconciliation of Adjusted Net Earnings to Net Earnings and Calculation of Adjusted Diluted EPS under U.S. GAAP ($ in millions, except per share data) Q2 2021 Q2 2020 FY 2020 FY 2019 FY 2018 Net earnings from continuing operations ($) 265 125 683 678 591 Acquisition-related amortization, pre tax 35
Slide 19: Reconciliation of FY 2020, FY 2019, and FY 2018 Earnings to Adj. Segment EBIT
Reconciliation of FY 2020, FY 2019, and FY 2018 Earnings from Continuing Operations to Adj. Segment EBIT and Calculation of Adj. EBIT Margin ($ in millions) FY 2020 FY 2019 FY 2018 Revenue 6,684 7,136 6,992 Earnings from continuing operations 683 678 591 Add back: Corporate expense 127 124 130 Inter
Slide 20: Reconciliation of Free Cash Flow, EPS to Adjusted EPS, and Adjusted EBIT Conversion Margin
Reconciliation of Free Cash Flow, EPS to Adjusted EPS, and Adjusted EBIT Conversion Margin Free Cash Flow ($ millions) YTD 2021 YTD 2020 Net Cash Provided by Operating Activities 437 348 Capital Expenditures (73) (79) Free Cash Flow 364 269 Free Cash Flow as a % of Net Earnings 73.2% 89.2% Free Cash
Slide 21: Non-GAAP Definitions
Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Net Earnings: is defined as net earnings adjusted for the effect of acquisition-related amortization, rightsizing and other costs, and gain on dispositions. Adjusted Net Earnings Margin: is defined as adjusted net earnings divided by re
Slide 22: Performance Measure Definitions
Performance Measure Definitions Definitions of Performance Measures: Bookings represent total orders received from customers in the current reporting period. This metric is an important measure of performance and an indicator of revenue order trends. Organic Bookings represent total orders received
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