Slide 1: Earnings Conference Call Third Quarter 2021
October 19, 2021 – 9:00am CT Earnings Conference Call Third 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: Q3 2021 Highlights
Q3 2021 Highlights Revenue +15% Y-o-Y at $2.0B Backlog(2) +79% Y-o-Y growth rate +13% organic(1) $ Billions 2.8 2.6 Growth in all segments (Y-o-Y) 2.2 Bookings(2) +27% Y-o-Y to $2.3B 1.6 1.4 +25% organic(2) Book-to-bill(2): 1.14; 1+ across all segments Sep-19 Sep-20 Mar-21 Jun-21 Sep-21 Segment EBIT
Slide 4: Summary Corporate Q3 Results
Summary Corporate Q3 Results Q3 2021 Highlights and Comments Revenue change All-in +15% Y-o-Y growth in all segments (Y-o-Y) Organic(1) +13% Q3 FX impact: +1%; acquisitions +1% Bookings change All-in(2) +27% Q3 book-to-bill(2): 1.14; bookings up Y-o-Y in all five segments (Y-o-Y) Organic(2) +2
Slide 5: Segment Results
Segment Results Q3 2021(1) Revenue ($M) Adj. EBIT Organic YTD Segment / Organic % / bps ∆ Revenue Δ Performance Commentary Change % Y-o-Y ‘21 vs. ‘19 Top line strength across most end markets; soft shipments in European defense $448 14.2% components; significant input shortages impacting shipment
Slide 6: Revenue & Bookings
Revenue & Bookings Q3 2021 Revenue Change in Organic Revenue(1): +$231M, or +13.2% ’21 Organic Rev Growth(1) Q3 YTD ($M) 1,748 55 11 20 85 59 21 18 2,018 US 55% 16% 16% Q3 2020 DEP DFS DII DPPS DRFE FX ACQ./ Q3 2021 DISP. (2) Organic Q3 2021 Bookings(4) Change in Organic Bookings(4): +$448M, or +24.
Slide 7: Q3 2021 Adjusted Segment EBIT and Adjusted Net Earnings
Q3 2021 Adjusted Segment EBIT and Adjusted Net Earnings Change in Adjusted Segment EBIT (3) +$64M 22.4% 19.0% 22.1% 18.2% +80 bps 319 68 387 -3 0 13 51 5 452 -70 383 ($M) ADJ. EBIT D&A (1) ADJ. EBITDA DEP DFS DII DPPS DRFE ADJ. EBITDA D&A (2) ADJ. EBIT Q3 2020 Q3 2021 Change in Adjusted Net Earnings
Slide 8: Year-to-Date Free Cash Flow
Year-to-Date Free Cash Flow $M YTD ’21 YTD ’20 ∆ Net earnings 761 501 +260 Adjustment for gain on disposition - (5) +5 D&A 218 206 +12 Change in working capital (248) (92) -156 Change in other(1) 58 77 -19 Cash flow from operations 789 687 +102 Capex (121) (124) +3 Free cash flow(2) 667 563 +104 FCF
Slide 9: Portfolio Activity Update
Portfolio Activity Update Inorganic Priorities as Communicated in September 2019 2018-21 Deals Runway Software / 2018-2020 2021 Spend ($M)1 & Priority Core Services Adjacencies Grow in pumps Hygienic pumps Pumps & Process Hygienic and life science ~$150 Solutions Fluid path adjacencies I
Slide 10: FY2021 Guidance Update
FY2021 Guidance Update Post-Q2 Guide Revised Guide All-in Revenue 15-17% No change Growth GAAP(3) $6.45 - $6.55 $6.64 - $6.69 EPS +12.5c(2) Adj.(1) $7.30 - $7.40 $7.45 - $7.50 Tax rate 21% - 22% No change FCF(1) % of 12% - 14% No change Revenue Capex ~$175 – 200 million No change Revenue and Adj. Se
Slide 11: Appendix
Appendix 11
Slide 12: Organic Revenue and Bookings Bridges
Organic Revenue and Bookings Bridges Segment Growth Factors Q3 2021 Organic Growth Revenue Bookings Organic Engineered Products 14.2% 30.3% Fueling Solutions 3.0% 15.8% Imaging & Identification 7.4% 7.5% Pumps & Process Solutions 24.6% 50.1% Refrigeration & Food Equipment 16.0% 19.7% Total Organic 1
Slide 13: Organic Revenue Growth and YTD 2021 vs. YTD 2019 Comparison
Organic Revenue Growth and YTD 2021 vs. YTD 2019 Comparison Segment Growth Factors YTD Q3 Organic Growth YTD Q3 '21 vs. Q3 '19 2020 2021 Organic Growth Organic Engineered Products -10.9% 13.3% 1.0% Fueling Solutions -8.5% 9.7% 0.3% Imaging & Identification -8.6% 10.0% 0.5% Pumps & Process Solutions
Slide 14: Q3 2020 to Q3 2021 Revenue and Bookings Bridges by Segment
Q3 2020 to Q3 2021 Revenue and Bookings Bridges by Segment Revenue Bridge by Segment ($ in millions) DEP DFS DII DPPS DRFE Total Q3 2020 Revenue 387 381 266 348 368 1,748 Organic Growth 55 11 20 85 59 231 FX 5 5 4 4 2 21 Acquisitions / Dispositions 1 14 3 1 - 18 Q3 2021 Revenue 448 411 293 438 429 2
Slide 15: Reconciliation of Q3 2021 Net Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q3 2021 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q3 2021 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 448 411 293 438 429 2,018 Net earnings - - - - - 264 Add back: Corporate expense - - - - - 33 Interest
Slide 16: Reconciliation of Q3 2020 Net Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q3 2020 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q3 2020 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 387 381 266 348 368 1,748 Net earnings - - - - - 200 Add back: Corporate expense - - - - - 36 Interest
Slide 17: Reconciliation of Adjusted Net Earnings and Adjusted Diluted EPS
Reconciliation of Adjusted Net Earnings to Net Earnings and Adjusted Diluted EPS to Diluted EPS ($ in millions, except per share data) Q3 2021 Q3 2020 FY 2020 FY 2019 FY 2018 Net earnings from continuing operations ($) 264 200 683 678 591 Acquisition-related amortization, pre tax 36 35 139 138 146 A
Slide 18: Reconciliation of FY 2020, FY 2019, and FY 2018 Earnings to Adj. Segment EBIT
Reconciliation of FY 2020, FY 2019, and FY 2018 Earnings from Continuing Operations to Adj. Segment EBIT and Calculation of Adj. EBIT Margin ($ 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 19: 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 789 687 Capital Expenditures (121) (124) Free Cash Flow 667 563 Free Cash Flow as a % of Net Earnings 87.7% 112.4% Free C
Slide 20: 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/benefits, gain/loss on dispositions, loss on extinguishment of debt, loss on assets held for sale, and the
Slide 21: 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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