Slide 1: Earnings Conference Call Third Quarter 2024
October 24, 2024 – 8:30am CT Earnings Conference Call Third Quarter 2024
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 we serve, changes in customer de
Slide 3: Q3 2024 Performance Highlights from Continuing Operations
Q3 2024 Performance Highlights from Continuing Operations Organic Revenue(1) +0.3% Y-o-Y Organic Bookings(2) +5% Y-o-Y All-in revenue grew 1.3% Quarterly Y-o-Y Organic Bookings Growth 60% 24% 21% 12% 5% 26% 2% 3% Total Segment +70 bps Y-o-Y to 22.6% Earnings Margin(1) -5% -7% -11% -5% -7% -17% -16%
Slide 4: Summary Corporate Q3 Results from Continuing Operations
Summary Corporate Q3 Results from Continuing Operations Q3 2024 Highlights Revenue change All-in +1% ▪ Net acquisition / divestiture impact: +1% (Y-o-Y) Organic(1) +0.3% Bookings change All-in(2) +6% ▪ Organic growth(2) in three out of five segments (Y-o-Y) Organic(2) +5% Margin % 23% Segment Earnin
Slide 5: Segment Results
Segment Results Q3 2024 Revenue ($M) / Segment Earnings Segment Y-o-Y Organic(1) ∆ % % / bps ∆ Y-o-Y Performance Commentary ▪ Volumes up on robust shipments in industrial winches and improved production performance in $296 19% vehicle services. Aerospace & defense lower on shipment timing DEP +12% -
Slide 6: Revenue & Bookings
Revenue & Bookings Q3 2024 Revenue Change in Organic Revenue(1): +$5M (flat Y-o-Y) Q3 ’24 Organic Rev Growth(1) ($M) 1,958 37 -5 9 8 -45 -1 21 1,984 US 55% +8% Q3 2023 DEP DCEF DII DPPS DCST FX ACQ. / DISP. Q3 2024 Organic Q3 2024 Bookings(2) Change in Organic Bookings(2): +$90M, or +5% EUROPE 20% -
Slide 7: Q3 Year-to-Date Free Cash Flow and Adjusted Free Cash Flow
Q3 Year-to-Date Free Cash Flow and Adjusted Free Cash Flow $M YTD ’24 YTD ’23 ∆ Net earnings 1,261 761 500 Earnings from discontinued operations, net (100) (75) (25) Gain on disposition (598) — (598) D&A 251 228 23 Change in working capital (103) (99) (4) Change in other(1) (63) (93) 30 Cash flow fr
Slide 8: Growth Platforms Driving Top Line and Margin Mix Accretion
Growth Platforms Driving Top Line and Margin Mix Accretion Secular Growth Exposures into 2025 Near-Term Headwinds Dissipating Clean Energy ▪ Robust tailwinds in LNG infrastructure and H2 mega project Beverage Can- ▪ Components Capital investment slowdown by large canning customers quoting activity M
Slide 9: Strong Liquidity Position Enables Value Creation Upside
Strong Liquidity Position Enables Value Creation Upside Priorities Commentary Year-End Dry Powder Estimate $ in billions ▪ Capex of $145M-$155M in 2024, down 15-20% vs. Invest 2023 1 Organically ▪ Significant capacity expansion projects and productivity investments completed Optional temporary inves
Slide 10: Strong Setup for EPS Growth in 2025
Strong Setup for EPS Growth in 2025 Pro Forma 2025 Adjusted EPS(1) ▪ 3-5% organic growth $9.05-$9.20 ▪ ~40% segment earnings FY '24 Adj EPS (1) from Continuing conversion on mix Operations Guidance Reconciliation $0.55-$0.90 strength and $25M of Previous Guidance $ 9.05 - $ 9.20 restructuring benefi
Slide 11: Appendix
Appendix 11
Slide 12: Q3 2024 Segment Earnings and Adj. Earnings from Cont. Ops.
Q3 2024 Segment Earnings and Adj. Earnings from Cont. Ops. Change in Total Segment Earnings(2) +$19M 24.4% 23.7% +70 bps 21.9% 22.6% ($M) 428 36 465 -8 8 7 21 -8 484 -37 448 TOTAL SEG. NON-ACQ. ADJ. DEP DCEF DII DPPS DCST ADJ. NON-ACQ. TOTAL SEG. EARNINGS D&A (1) EBITDA (2) EBITDA (2) D&A (1) EARNIN
Slide 13: Organic Revenue Bridges
Organic Revenue Bridges Segment Growth Factors Q3 2024 Organic Engineered Products 12.1% Clean Energy & Fueling (1.2)% Imaging & Identification 3.3% Pumps & Process Solutions 1.9 % Climate & Sustainability Technologies (9.4) % Total organic 0.3 % Acquisitions 3.8 % Dispositions (2.7)% Currency trans
Slide 14: Organic Bookings Bridges
Organic Bookings Bridges Organic Acquisitions Dispositions Currency translation Total a1 Q2 Q3 Qi Q2 Q3 a4 Qi Q2 Q3 Q4 Qi Q2 Q3 a4 2024-2024 = 2024-2023, 2023-2023, -2023-2022,=—-2022,—-2022,— 2022-2021 ~—— 202120242024 32% 15% 51% (54)% (163)% (61)% 22% (5A)% (7A)% (114)% (174)% 25% 601% 240% 212%
Slide 15: Q3 2023 to Q3 2024 Revenue and Bookings Bridges
Q3 2023 to Q3 2024 Revenue and Bookings Bridges Note: Numbers may not add due to rounding 15
Slide 16: Reconciliation of Earnings to Total Segment Earnings and Adjusted Segment EBITDA
Reconciliation of Earnings from Continuing Operations to Total Segment Earnings and Total Adjusted Segment EBITDA Note: Numbers may not add due to rounding 16
Slide 17: Reconciliation to Adjusted Net Earnings and Adjusted Diluted EPS
Reconciliation of Earnings from Continuing Operations to Adjusted Net Earnings and to Adjusted Diluted EPS Note: Numbers may not add due to rounding 17
Slide 18: Reconciliation of Adjusted Free Cash Flow and EPS from Continuing Operations
Reconciliation of Adjusted Free Cash Flow and EPS from Continuing Operations to Adjusted EPS from Continuing Operations Note: Numbers may not add due to rounding 18
Slide 19: Reconciliation of Pro Forma 2025 EPS from Continuing Operations
Reconciliation of Pro Forma 2025 EPS from Continuing Operations to Pro Forma 2025 Adjusted EPS from Continuing Operations Note: Numbers may not add due to rounding 19
Slide 20: Non-GAAP Definitions
Non-GAAP Definitions Definitions of Non-GAAP Measures: The items described in our definitions herein, unless otherwise noted, relate solely to our continuing operations. Adjusted Earnings From Continuing Operations: is defined as earnings from continuing operations adjusted for the effect of purchas
Slide 21: Performance Measure Definitions
Performance Measure Definitions Definitions of Performance Measures: The items described in our definitions herein, unless otherwise noted, relate solely to our continuing operations. Bookings represent total orders received from customers in the current reporting period and exclude de-bookings rela