Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Morgan Stanley's 11th Annual Laguna Conference 2023
22 slides from Carlisle Companies's conference presentation, Sep 11, 2023
Slide 1: Morgan Stanley Investor Presentation
Morgan Stanley Investor Presentation September 11, 2023 NYSE: CSL
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally use words such as "expect," "foresee," "anticipate," "believe," "project,"
Slide 3: Progress Since Vision 2025 Launch
Progress Since Vision 2025 Launch 2016 $6.78 Adj EPS* Exceeded Vision 2025 Target Vision 2030 Leverage Early realization “The Pivot” ESG Mega of Vision 2025 Enhanced Pivot to Trends Applying these foundational M&A Roofing systems, CCM Price Building insulation, and pillars, to Value Processe
Slide 4: CIT Divesture Announcement On September 7th
CIT Divesture Announcement On September 7th Aerospace post covid rebound accelerating “Pivot towards an innovative, energy- Cost restructuring and efficiency initiatives efficient focused delivering +300bps margin expansion building products portfolio will allow our shareholders to Sale of CIT will
Slide 5: Carlisle Value Creation Remains Attractive
Carlisle Value Creation Remains Attractive • Track record of outperformance relative to peers (3-yr TSR ~35% vs. ~15% for peers and S&P) • Innovation-driven organic growth above market (5%+) with differentiated experience that earns us a premium (25%+ EBITDA) Carlisle’s pivot to pure-play building •
Slide 6: Fed Actions And Tight Lending Environment Creating Near Term Noise
Fed Actions And Tight Lending Environment Creating Near Term Noise Impacts of destocking largely complete Non-resi near term demand challenges and project delays driven by: • Elevated economic uncertainty • Higher interest rates • Tight lending environment • Weather impact and labor market Market da
Slide 7: Portfolio Transformation Ongoing With Pivot to a Premier Diversified Building Products Platform
Portfolio Transformation Ongoing With Pivot to a Premier Diversified Building Products Platform Pre-Pivot: Carlisle was a Diversified Industrial Today: A Focused Platform 2% 4%3% 7% 7% 16% 5% 5% 7% 7% $2.6B 43% $3.7B ~$5.5B Revenue Revenue Revenue 7% in 2006 in 2016 56% 24% in 2023E 23% 60% 24% Cons
Slide 8: Best in Class Financial Performance With Multi-Year Runway
Best in Class Financial Performance With Multi-Year Runway Driving above-market organic revenue growth, EBITDA* Margin and ROIC* Durable Revenue Growth Expanding Adj. EBITDA* Margin Exceptional Return on Capital $0.7B $6.6B 24% $2.3B 21% 6% +900 bps CAGR +800 bps $3.6B 15% 13% 2012 Organic M&A, 2022
Slide 9: Returns Focused Capital Deployment – Dividends and Share Repurchases
Returns Focused Capital Deployment – Dividends and Share Repurchases Dividends Per Share Share Repurchases $MM 14% CAGR $650 $3.40 $3.00 $2.10 $2.16 $460 $2.00 $382 $382 $400 $1.60 $316 $1.40 $1.48 $268 $250 $1.20 $1.00 $0.88 $75 $0.72 $0.80 2016 2017 2018 2019 2020 2021 2022 2023 2011 2012 2013 201
Slide 10: Enterprise-wide Carlisle Operating System (COS) Enables Continuous Improvement Culture
Enterprise-wide Carlisle Operating System (COS) Enables Continuous Improvement Culture Under Vision 2025, we will: Creates exceptional value Ensure consistent applications of COS across for our customers every function in the enterprise and shareholders Lean Sigma Continue to drive operational
Slide 11: The Premium Carlisle Experience
The Premium Carlisle Experience Our commitment to being the manufacturer of choice for the Building Products industry Award-winning Outstanding National manufacturing Industry-leading logistics Ensures our customers customer service supply chain and footprint with management receive the right produc
Slide 12: The Carlisle Experience and Earning Price Drives Consistently Strong Performance
The Carlisle Experience and Earning Price Drives Consistently Strong Performance Building Products businesses generate highly resilient EBITDA during economic downturns 27% 30% $MM $5,449 $6,000 21% 25% 23% 23% $5,000 21% $3,837 20% 19% 18% 18% 20% $4,000 $3,233 16% 17% $2,996 16% 15% $2,880 14% 15%
Slide 13: Financial Reconciliations
vision CARLISLE 2025 THE NEXT 100 YEARS Financial Reconciliations
Slide 14: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics This presentation includes the following financial measures that are not presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”): 1. Adjusted EBITDA, which the Company defines as net income excluding income/loss from d
Slide 15: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Year Ended December 31, (in millions) 2022 2012 Net income (GAAP) $ 924.0 $ 270.2 Less: (loss) income from discontinued operations (GAAP) (1.2) 2.9 Income from continuing operations (GAAP) 925.2Senior 267.3 Provision for income taxes 270.4 Note 131.5 Interest expens
Slide 16: Reconciliation to ROIC
Reconciliation to ROIC Year Ended December 31, (in millions) 2012 Net income (GAAP) $ 270.2 Less: (loss) income from discontinued operations (GAAP) 2.9 Income from continuing operations (GAAP) Senior 267.3 Provision for income taxes Note 131.5 Interest expense, net $750 26.0 Interest income M (0.5)
Slide 17: Reconciliation to ROIC
Reconciliation to ROIC Year Ended December 31, (in millions) 2022 Net income (GAAP) $ 924.0 Less: (loss) income from discontinued operations (GAAP) (1.2) Income from continuing operations (GAAP) Senior 925.2 Provision for income taxes Note 270.4 Interest expense, net $750 85.9 Interest income M (7.1
Slide 18: Reconciliation to Adjusted EBITDA – Building Products
Reconciliation to Adjusted EBITDA – Building Products* Twelve Months Ended December 31, (in millions) 2008 2009 2010 2011 2012 2013 2014 Operating income (GAAP) $ 151.1 $ 155.1 $ 159.1 $ 178.2 $ 273.4 $ 264.3 $ 269.8 Non-operating (income) expense(1) — (0.1) (0.1) 0.3 — Senior 0.3 0.9 EBIT 151.1 155
Slide 19: Reconciliation to Adjusted EBITDA – Building Products
Reconciliation to Adjusted EBITDA – Building Products* Twelve Months Ended December 31, (in millions) 2015 2016 2017 2018 2019 2020 2021 2022 Operating income (GAAP) $ 351.1 $ 430.3 $ 421.9 $ 435.4 $ 576.0 $ 581.6 $ 684.3 $ 1,303.6 Non-operating (income) expense(1) — (0.1) 0.8 (0.1) 0.5 3.8 2.1 2.8
Slide 20: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS Year Ended December 31, 2016 Pre-tax Post-tax Impact to (in millions, except per share amounts) Impact Impact(1) Diluted EPS(2) Net income (GAAP) $ 250.1 $ 3.86 Less: loss from discontinued operations (GAAP) (0.7) (0.01) Income from continuing operations (GAAP)
Slide 21: Reconciliation of Unaudited Leverage Ratios and Net Debt to Capital Ratios
Reconciliation of Unaudited Leverage Ratios and Net Debt to Capital Ratios Unaudited Leverage Ratios Net Debt to Capital Ratio (in millions, except ratios) LTM 6/30/2023 (in millions, except percentages) 6/30/2023 Income from continuing operations (GAAP) $ 768.3 Long-term debt, including current por
Slide 22: Investor Presentation
Investor Presentation Mehul Petal NYSE: CSL Vice President, Investor Relations Carlisle Companies Incorporated Email: mpetal@carlisle.com
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