Slide 1: Q1 Earnings Update
Q1 Earnings Update May 10, 2023 www.middleby.com 1
Slide 2: Middleby Segment Summary
MIDDLEBY SEGMENT SUMMARY Three Industry-Leading Foodservice Platforms 2023 YTD PROFORMA REVENUE BY SEGMENT * Food Processing • 115+ highly-leading brands Commercial 17% 61% • Three industry-leading synergistic foodservice segments Residential 22% • Technology and innovation leader • Differentiated g
Slide 3: Financial Results
FINANCIAL RESULTS Q1 2023 Financial Results Results Commentary (in millions, except percentages) Q1 ‘23 Q1 ’22 Change • Organic revenue growth by segment: • Commercial Foodservice 11.5% Net Sales $1,007.4 $994.7 1.3% • Residential Kitchen -32.1% Gross Profit 378.7 330.5 • Food Processing 24.3% 14.6%
Slide 4: Commercial Foodservice
COMMERCIAL FOODSERVICE Q1 2023 Financial Results Results Commentary • Margin expansion over prior year as a result of (in millions, except percentages) Q1 ‘23 Q1 ’22 Change pricing, shifting mix towards higher technology Revenues $613.9 $540.0 13.7% solutions, and disciplined cost control Adjusted E
Slide 5: Residential Kitchen
RESIDENTIAL KITCHEN Q1 2023 Financial Results Results Commentary • Outdoor grill companies continue to face headwinds (in millions, except percentages) Q1 ‘23 Q1 ’22 Change from higher retail inventory levels Revenues $220.0 $331.1 -33.6% • International revenue affected primarily by market Adjusted
Slide 6: Food Processing
FOOD PROCESSING Q1 2023 Financial Results Results Commentary • Organic revenue growth across both bakery and (in millions, except percentages) Q1 ‘23 Q1 ’22 Change protein products Revenues $173.5 $123.6 40.4% • Strong international growth in all markets Adjusted EBITDA 40.9 23.5 74.0% • Substantial
Slide 7: Debt and Liquidity
DEBT AND LIQUIDITY Q1 2023 Leverage Ratio (in $000s) Liquidity Commentary • Operating cash flows for Q1 were $92 million Cash $156.5 • Record Q1 operating cash flows with continued focus on strategic reinvestments: Debt $2,732.7 • Open-market stock repurchases of $48 million • Capital expenditures o
Slide 8: Strategic M&A Focus
STRATEGIC M&A FOCUS Recent M&A Activity Strategic Investment Themes • Middleby has completed 30+ transactions since the beginning of 2019, investing • Automation, IoT and Digital Controls in key technology initiatives and trends, which have enhanced our capabilities • Beverage Platform Expansion and
Slide 9: Revenue Composition – Commercial Foodservice
REVENUE COMPOSITION – COMMERCIAL FOODSERVICE 2022 REVENUE BY CUSTOMER SEGMENT 2022 REVENUE BY DEMAND REQUIREMENT (CHANGE FROM 2021) (CHANGE FROM 2021) TRAVEL & LEISURE, MENU DRIVEN, 3%, (↓2%) 10%, (↓2%) PARTS, 16%, INDEPENDENT, 12%, (↑3%) PARTS, 16%, (↑1%) CASUAL DINING, 10%, (↑5%) INSTITUTIONAL, RE
Slide 10: New Product Spotlight
NEW PRODUCT SPOTLIGHT • Collaborative robotic frying • A Complete Middleby Automation Solution • 55-65 baskets per hour capacity • Two product dispensing • Modular and retrofittable design • Auto salting/seasoning • OPEN KITCHEN IoT enabled www.middleby.com 10
Slide 11: Acquisitions
ACQUISITIONS www.flavorburst.com • An innovative flavoring technology used to enhance customer offerings for soft serve, shakes, slush, smoothies, frozen carbonated beverages, frozen coffees, and frozen cocktails • Specialized in developing flavor and candy injection machines for 30 years • Compleme
Slide 12: Acquisitions
ACQUISITIONS www.BlueSPARQ.com • A Middleby Company furthering Middleby One Touch, common controls, and accelerating new product development • Capabilities • UI/UX and application development for embedded systems • Custom digital hardware design • Quick turn mfg with small to full production runs •
Slide 13: Middleby Innovation Kitchens Madrid, Spain
MIDDLEBY INNOVATION KITCHENS Madrid, Spain • Officially opened on March 2nd with an invitation-only event, attended by over 100 customers from Europe • Since the opening, over 275 customers have visited the MIK Madrid • 121 pieces of live Middleby equipment showcased in our 7 vignettes • World-class