Slide 1: Earnings Conference Call First Quarter 2021
April 20, 2021 – 9:00am CT Earnings Conference Call First 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: Q1 2021 Highlights
Q1 2021 Highlights Revenue +13% Y-o-Y at $1.9B Backlog(2) +39% Y-o-Y growth rate +9% organic(1) 2.2 $ Billions Growth in all segments 1.6 1.4 Bookings(2) +31% Y-o-Y to $2.3B +27% organic(2) Mar-19 Mar-20 Mar-21 Book-to-bill(2): 1.25, >1 across all segments Segment EBIT +310 bps to 19.0% Diluted EPS
Slide 4: Summary Corporate Q1 Results
Summary Corporate Q1 Results Q1 2021 Highlights and Comments Revenue change All-in 13% Y-o-Y growth in all segments (Y-o-Y) Organic(1) 9% Q1 FX impact: +3%; acquisitions (net of divestitures) +1% Bookings change All-in(2) +31% Q1 book-to-bill(2): 1.25; bookings up Y-o-Y in all five segments (Y
Slide 5: Segment Results
Segment Results Q1 2021(1) Revenue ($M) / Adj. EBIT % / Segment Organic bps ∆ Performance Commentary Change % Y-o-Y Top line strength in vehicle aftermarket, industrial automation, and aerospace & defense $428 17.0% DEP Backlog(2) up $109M Y-o-Y (+24%); book-to-bill(2) 1.23; organic bookings(2)
Slide 6: Revenue & Bookings
Revenue & Bookings Q1 2021 Revenue Change in Organic Revenue(1): +$145M, or +8.8% Q1 ’21 Organic Rev Growth(1) ($M) 1,656 9 11 9 59 57 51 15 1,868 US 56% 7% Q1 2020 DEP DFS DII DPPS DRFE FX ACQ./ Q1 2021 DISP. (2) Organic Q1 2021 Bookings(4) Change in Organic Bookings(4): +$473M, or +26.5% OTHER AME
Slide 7: Q1 2021 Adjusted Segment EBIT and Adjusted Net Earnings
Q1 2021 Adjusted Segment EBIT and Adjusted Net Earnings Change in Adjusted Segment EBIT (3) +$94M 22.7% +280 bps 19.1% 19.9% 15.9% 264 65 329 4 12 6 52 21 424 -68 357 ($M) ADJ. EBIT D&A (1) ADJ. EBITDA DEP DFS DII DPPS DRFE ADJ. EBITDA D&A (2) ADJ. EBIT Q1 2020 Q1 2021 Change in Adjusted Net Earning
Slide 8: Q1 2021 Free Cash Flow
Q1 2021 Free Cash Flow $M Q1 ’21 Q1 ’20 ∆ Net earnings 233 176 +57 Adjustment for gain on disposition - (7) +7 D&A 74 69 +5 Change in working capital (128) (122) -6 Change in other(1) (2) (40) +38 Cash flow from operations 177 76 +101 Capex (31) (40) +9 Free cash flow(2) 146 36 +110 FCF % of revenue
Slide 9: Trends and Business Outlook
Trends and Business Outlook Segment Comments Strength in vehicle aftermarket, industrial automation, and aerospace & defense DEP Waste handling backlog improved in Q1; shipments levered toward H2 ‘21 Industrial winches trending above expectation but recovery levered toward H2 ‘21 Sustained s
Slide 10: FY2021 Guidance Update
FY2021 Guidance Update Initial Guide Revised Guide All-in Revenue +2 ppt 8-10% 10-12% Growth GAAP $5.42 - $5.62 $5.92 - $6.02 EPS +$0.40 - $0.50 Adj.(1) $6.25 - $6.45 $6.75 - $6.85 Tax rate 21% - 22% No change Free Cash Flow(1) % of 11% - 13% No change Revenue Capex ~$175 – 200 million No change Eur
Slide 11: 2021 Recovery Expected to Result in Solid Through-Cycle Performance
2021 Recovery Expected to Result in Solid Through-Cycle Performance Revenue and Adj. Segment EBIT Margin(1) Adj. Earnings Per Share(1) Adj. Segment EBIT Margin (%) Revenue ($B) 9 $7.4 – 7.5B 8 $7.1B +11% CAGR $7.0B Prior $6.75-$6.85 7 $6.7B guidance(2) $5.93 Prior $5.67 6 25-35% guidance(2) 18.2% $4
Slide 12: Appendix
Appendix 12
Slide 13: Q1 2020 to Q1 2021 Revenue and Bookings Bridges by Segment
Q1 2020 to Q1 2021 Revenue and Bookings Bridges by Segment Revenue Bridge by Segment ($ in millions) DEP DFS DII DPPS DRFE Total Q1 2020 Revenue 408 360 257 320 312 1,656 Organic Growth 9 11 9 59 57 145 FX 9 10 12 12 8 51 Acquisitions / Dispositions 1 9 6 4 (5) 15 Q1 2021 Revenue 428 390 284 394 372
Slide 14: Organic Revenue and Bookings Bridges
Organic Revenue and Bookings Bridges Segment Growth Factors Q1 2021 Organic Growth Revenue Bookings Organic Engineered Products 2.3% 24.8% Fueling Solutions 3.0% 7.3% Imaging & Identification 3.7% 0.1% Pumps & Process Solutions 18.4% 44.0% Refrigeration & Food Equipment 18.3% 50.7% Total Organic 8.8
Slide 15: Reconciliation of Q1 2021 Net Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q1 2021 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q1 2021 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 428 390 284 394 372 1,868 Net earnings - - - - - 233 Add back: Corporate expense - - - - - 39 Interest
Slide 16: Reconciliation of Q1 2020 Net Earnings to Adj. EBIT and Adj. EBITDA
Reconciliation of Q1 2020 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment Q1 2020 ($ in millions) DEP DFS DII DPPS DRFE Total Revenue 408 360 257 320 312 1,656 Net earnings - - - - - 176 Add back: Corporate expense - - - - - 24 Interest
Slide 17: 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) Q1 2021 Q1 2020 FY 2020 FY 2019 FY 2018 Net earnings from continuing operations ($) 233 176 683 678 591 Acquisition-related amortization, pre tax 36
Slide 18: Reconciliation of FY 2020, FY 2019, and FY 2018 Earnings to Adj. Segment EBIT
Reconciliation of FY 2020, FY 2019, and FY 2018 Earnings from Continuing Operations to Adj. Segment EBIT and Calculation of Adj. EBIT Margin ($ 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) Q1 2021 Q1 2020 Net Cash Provided by Operating Activities 177 76 Capital Expenditures (31) (40) Free Cash Flow 146 36 Free Cash Flow as a % of Earnings 62.7% 20.2% Free Cash Flow as
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, and gain on dispositions. Adjusted Net Earnings Margin: is defined as adjusted net earnings divided by re
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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