Slide 1: Earnings Conference Call Fourth Quarter and Full Year 2022
January 31, 2023 – 8:00am CT Earnings Conference Call Fourth Quarter and Full Year 2022
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 general economic conditions and conditions in the particular markets in which we operate, supply chai
Slide 3: Q4 and 2022 Performance Highlights
Q4 and 2022 Performance Highlights Revenue Bookings(2) Q4 ’22 FY ’22 Q4 ’22 FY ’22 All in: +8% to $2.1B +8% to $8.5B All in: (19%) to $1.9B (11%) to $8.3B Organic(1): +9% +9% ’19-’22 Org.(2) CAGR: +1% +4% Adjusted Earnings per Share Segment Earnings Margin(1): Q4 ’22 FY ’22 Q4 ’22 FY ’22 Adjusted EP
Slide 4: Summary Corporate Q4 and Full Year Results
Summary Corporate Q4 and Full Year Results Q4 2022 FY 2022 Highlights and Comments Revenue change All-in 8% 8% Q4 Y-o-Y organic growth in three out of five segments; one segment flat (Y-o-Y) Organic(1) 9% 9% Q4 FX impact: -5%; acquisitions (net of divestitures) +3% Bookings change All-in(2) -19%
Slide 5: Segment Results
Segment Results Q4 2022 FY 2022 Revenue ($M) Segment Revenue ($M) Segment Segment / Y-o-Y Earnings % / / Y-o-Y Earnings % / Performance Commentary Organic(1) ∆ % bps ∆ Y-o-Y Organic(1)∆ % bps ∆ Y-o-Y Sustained strong organic growth in waste handling, vehicle aftermarket, and industrial winches $52
Slide 6: Revenue & Bookings
Revenue & Bookings Q4 2022 Revenue Organic Rev Growth(1) Change in Organic Revenue(1): +$186M, or 9.3% Q4 ’22 FY ’22 ($M) 1,989 76 1 25 -17 101 -94 58 2,139 US 56% +7% +10% Q4 2021 DEP DCEF DII DPPS DCST FX ACQ./ Q4 2022 DISP. (2) Organic Q4 2022 Bookings(4) Change in Organic Bookings(4): -$416M, or
Slide 7: FY 2022 Free Cash Flow
FY 2022 Free Cash Flow $M FY22 FY21 ∆ Net earnings 1,065 1,124 -59 Adjustment for gain on dispositions 0 -206 +206 D&A 308 290 +18 Change in working capital -387 -265 -122 Change in accrued and deferred taxes -91 40 -130 Change in other(1) -89 133 -223 Cash flow from operations 806 1,116 -310 Capex
Slide 8: Robust Through-Cycle Order Rate Trends Driving Continued Strength in Backlog
Robust Through-Cycle Order Rate Trends Driving Continued Strength in Backlog Unprecedented Book-to-Bill(1) in ’21 Continued Strength in Backlog(1) $B Revenue Bookings $B 3.2 3.0 DEP 9.4 8.5 8.3 DCEF 7.9 1.8 7.0 7.3 7.1 7.3 6.7 6.9 DII 1.4 1.5 1.2 DPPS DCST 2018 2019 2020 2021 2022 12/17 12/18 12/19
Slide 9: 2023 Outlook by Segment
2023 Outlook by Segment ’23 Organic Growth(1) ’23 Margin Segment Outlook Outlook Comments Strong growth outlook across most businesses, particularly strong bookings / backlog in waste handling; vehicle aftermarket slower after two years of double-digit organic growth; slow start in ’23 on lingerin
Slide 10: Opportunistically Stepped-up Return of Capital in 2022; Capital Deployment Priority Stack Remains Unchanged
Opportunistically Stepped-up Return of Capital in 2022; Capital Deployment Priority Stack Remains Unchanged Priorities 2022 Commentary Capital Allocation Capex of $221M (2.6% of revenue), a recent record Invest Significant capacity expansions (e.g. heat exchangers Capex 15% 16% 1 for heat pumps,
Slide 11: FY 2023 Guidance Continues Trend of Robust Earnings Growth
FY 2023 Guidance Continues Trend of Robust Earnings Growth Revenue Growth Rate(1): 3% - 5% Through-Cycle Adj. EPS(2) Accretion Effective Tax rate: 21% – 21.5% $8.85-$9.05 +12-13% CAGR $8.45 $7.63 EPS and other GAAP EPS: $7.87 - $8.07 $5.93 $5.67 Adjusted EPS(2): $8.85 - $9.05 $4.97 Expect $0
Slide 12: Appendix
Appendix 12
Slide 13: Q4 2022 Segment Earnings and Adjusted Net Earnings
Q4 2022 Segment Earnings and Adjusted Net Earnings Change in Segment Earnings(2) +$62M 22.6% 21.2% +140 bps 21.0% 19.5% ($M) 388 35 422 41 17 7 -29 26 484 35 449 SEGMENT NON-ACQ. ADJ. EBITDA DEP DCEF DII DPPS DCST ADJ. EBITDA NON-ACQ. SEGMENT EARNINGS D&A (1) D&A (1) EARNINGS Q4 2021 Q4 2022 Change
Slide 14: Organic Revenue Bridges
Organic Revenue Bridges Note: Numbers may not add due to rounding 14
Slide 15: Organic Bookings Bridges
Organic Bookings Bridges Note: Numbers may not add due to rounding 15
Slide 16: Q4 2021 to Q4 2022 Revenue and Bookings Bridges by Segment
Q4 2021 to Q4 2022 Revenue and Bookings Bridges by Segment Note: Numbers may not add due to rounding 16
Slide 17: FY 2021 to FY 2022 Revenue Bridge by Segment
FY 2021 to FY 2022 Revenue Bridge by Segment Note: Numbers may not add due to rounding 17
Slide 18: Reconciliation of Net Earnings to Segment Earnings and Adjusted Segment EBITDA
Reconciliation of Net Earnings to Segment Earnings and Adjusted Segment EBITDA Note: Numbers may not add due to rounding (1) Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructuring a
Slide 19: Reconciliation of Net Earnings to Adjusted Net Earnings and Diluted EPS to Adjusted Diluted EPS
Reconciliation of Net Earnings to Adjusted Net Earnings and Diluted EPS to Adjusted Diluted EPS Note: Numbers may not add due to rounding 19
Slide 20: Backlog and Bookings by Segment
Backlog and Bookings by Segment Note: Numbers may not add due to rounding 20
Slide 21: Reconciliation of Free Cash Flow and EPS to Adjusted EPS
Reconciliation of Free Cash Flow and EPS to Adjusted EPS Note: Numbers may not add due to rounding 21
Slide 22: Non-GAAP Definitions
Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Net Earnings: is defined as net earnings adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits, Tax Cuts and Jobs Act, gain/loss on dispositions, loss on extinguishment of debt and loss on asset
Slide 23: 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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