Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q4 2020 Earnings Presentation
23 slides from Carlisle Companies's earnings presentation, Feb 4, 2021
Slide 1: 4th Quarter 2020 Earnings Conference Call
4th Quarter 2020 Earnings Conference Call February 4, 2021
Slide 2: Forward-looking statements Non-GAAP financial measures
Forward-looking statements Non-GAAP financial measures During this presentation, we make certain forward-looking Certain ratios related to Earnings before Interest, Income statements concerning plans and expectations for Carlisle Taxes, Depreciation and Amortization (“EBITDA”), Free Cash Companies I
Slide 3: 2020 Q4 Results
2020 Q4 Results Q4 revenue declined 7% y/y Financial Summary (in millions, except per share amounts) Q4 '20 Q4 '19 Δ • Organic revenue down 9.0% Revenues $1,064.1 $1,144.3 -7.0% • 1.4% acquisition growth Operating income $111.8 $141.3 -20.9% • FX was a favorable 0.6% impact Income from continuing op
Slide 4: 2020 Demonstrated the Earnings Power of CCM
2020 Demonstrated the Earnings Power of CCM Organic Growth (y/y%) '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 +4.5% (23.5%) +8.7% +18.8% +10.2% +4.4% +9.0% +5.5% +2.6% +8.6% +5.1% +6.2% (7.5%) $3.50 25% $3.00 CCM Revenue and OI in $B 20% CCM Operating Margin $2.50 15% $2.00 $1.50 10% $1.00 $
Slide 5: Evolution of CCM
Evolution of CCM 1960s to mid-2010s - A Roofing 2015 to 2021: The Building 2021: Delivering the Carlisle Membrane Company Envelope Experience for the Sustainable • CCM introduced EPDM to • Accelerated investments in Building market in early 1960s innovation • 40% of global GHG emissions • Focus on s
Slide 6: Delivering the Carlisle Experience for the Sustainable Building
DELIVERING THE CARLISLE EXPERIENCE FOR THE SUSTAINABLE BUILDING POLYISO WALL ———ege—f AND ROOFING a 5 SINGLE PLY S z es SINGLE PL| INSULATION Sa “a EPDM A standard (10,000 square For every ton of CO, A standard (10,000 square consumed in manufacturing foot) white colored TPO foot) dark colored EPDM
Slide 7: CCM Core Business Positioned for Sustainable Growth
CCM Core Business Positioned for Sustainable Growth • Replacement Roofing Demand: Buildings from past 10-20 years make up ◦ Increasing capital investments to drive growth 25% of current infrastructure 25% in $6B market growing to $8B in next decade 20% ◦ Continually improving the Carlisle Experience
Slide 8: Expand the CCM Business Model into New Platforms
Expand the CCM Business Model into New Platforms Spray Foam Insulation Architectural Metals Europe ~$3B market growing HSD ~$2.5B market growing ~2x GDP ~$10B+ market opportunity Opportunities/Key Drivers: Opportunities/Key Drivers: Opportunities/Key Drivers: • Leverage 2020 launch of • Expanding re
Slide 9: Pandemic Impacted CIT, CFT and CBF but Fundamentals Remain Intact
Pandemic Impacted CIT, CFT and CBF but Fundamentals of Businesses Remain Intact • Reduced costs and positioned for future recovery • New product and sales pipelines robust • Markets for CBF/CFT signaling bottom and order books strengthening • Expect longer-term recovery at CIT due to well- documente
Slide 10: 2020 Capital Deployment Results
2020 Capital Deployment Results • Generated over $600 million in FCF for second consecutive year Capital deployment crucial to Vision 2025 • ROI focused investments: strategy driving to $15 EPS ◦ $96 million of CapEx in 2020 with significant increases planned in 2021 ◦ $36 million on M&A • Returned
Slide 11: Carlisle's Commitment to ESG
Carlisle's Commitment to ESG Reflecting our legacy of responsible stewardship, Carlisle is committed to driving sustainable and efficient processes in the design and manufacture of our products Environmental Social Governance • Buildings generate ~40% of annual • Doubled women in senior leadership •
Slide 12: COS Continues to Drive Our Culture
COS Continues to Drive Our Culture • Delivered 1.3% of savings and benefits in 2020, well within our 1-2% of sales annual target • Launched Path to Zero – our commitment to creating the safest possible work environment and features the goal of zero accidents and zero injuries • COS continues to be a
Slide 13: 2020 Q4 Revenue Bridge
2020 Q4 Revenue Bridge $1.14B -9.0% +1.4% +0.6% $1.06B Organic Revenue by Segment Construction Materials +0.6% Interconnect Technologies -40.3% Fluid Technologies -16.1% Brake & Friction +2.8% ### ### Earnings Call 13
Slide 14: 2020 Q4 Operating Margin Bridge
2020 Q4 Operating Margin Bridge 12.3% -3.2% +1.2% 10.5% -0.4% +0.6% ### ### Earnings Call 14
Slide 15: 2020 Q4 EPS Bridge
2020 Q4 EPS Bridge $1.81 -$0.74 +$0.19 -$0.03 $1.57 +$0.09 +$0.09 +$0.16 ### ### Earnings Call 15
Slide 16: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended December 31, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2020 2019 Change $ Change % Effect Revenues $ 760.8 $ 753.7 $ 7.1 0.9 % —% 0.6 % 0.3 % Operating income $ 155.0 $ 127.6 $ 27.4 21.5 % Operating margin percentage 20.4
Slide 17: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended December 31, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2020 2019 Change $ Change % Effect Revenues $ 154.6 $ 239.2 $ (84.6) (35.4)% 4.8 % (40.3)% 0.1 % Operating income $ (13.3) $ 29.1 $ (42.4) (145.7)% Operating margin
Slide 18: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended December 31, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2020 2019 Change $ Change % Effect Revenues $ 72.9 $ 79.5 $ (6.6) (8.3)% 5.0 % (16.1)% 2.8 % Operating income $ 3.3 $ 10.1 $ (6.8) (67.3)% Operating margin percentage 4.5
Slide 19: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended December 31, Acquisition Price / Exchange Effect Volume Rate Effect (in millions) 2020 2019 Change $ Change % Effect Revenues $ 75.8 $ 71.9 $ 3.9 5.4 % —% 2.8 % 2.6 % Operating income $ 0.8 $ 0.8 $ — —% Operating margin percentage 1.1 % 1.1 % NC Items aff
Slide 20: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization • Cash on hand of $902M as of 12/31/20 • $1B available under revolver • $112.4M capital returned to shareholders in dividends Senior Note • Utilized $382M of cash to repurchase shares $750M Senior 2.75% ◦ ~7M shares authorized as of February 2, 2020 Note Sen
Slide 21: Another Strong Year of Cash Flow
Another Strong Year of Cash Flow Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Operating Cash Flow $213.6 $53.2 $173.1 $213.9 $256.5 Capital Expenditures $(32.3) $(22.8) $(25.7) $(24.2) $(22.8) Free Cash Flow * $181.3 $30.4 $147.4 $189.7 $233.7 *Represents non-GAAP measure ### ### Earnings Call 21
Slide 22: 2021 Outlook
2021 Outlook Items Affecting 2021 Comparability* ($M) FY 2021F Revenue Outlook 1Q21F FY21F Corporate Expense ~$105M CCM +HSD ~$0 ~$0 D&A ~$225M CIT -MSD/HSD ~$4-6 ~$15-20 CapEx $150-175M CFT +LDD ~$0-1 ~$2-3 FCF Conversion 120% CBF +LDD ~$1-2 ~$2-3 Interest Expense, Net ~$75M Total CSL +MSD ~$5-8 ~$
Slide 23: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Unaudited Leverage Ratios Net Debt to Capital Ratio (in millions except for ratios) Capital (in millions except for ratios) LTM 12/31/2020 Total debt $ 2,101 Net debt $ 1,199 Income from Continuing Operations $ 324 Less: cash $ 902 Total shareholders' equi