Zurn Elkay Water Solutions Corporation · NYSE:ZWS

Zurn Elkay Water Solutions — Q2 2023 Earnings Presentation

10 slides from Zurn Elkay Water Solutions's earnings presentation, Jul 25, 2023

  1. Slide 1: Second Quarter 2023 Financial Results

    Second Quarter 2023 Financial Results July 25, 2023

  2. Slide 2: Cautionary Statement Under the Private Securities Litigation Reform Act

    Cautionary Statement Under the Private Securities Litigation Reform Act Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the federal securities laws that involve risks and uncertainties. Forward-looking statements include statements we make con

  3. Slide 3: Performance Update

    Performance Update 2Q Results Strategic Developments  2Q net sales increased +42% year over year  Proforma Core sales(1) (2) -1%  Repurchased $50M of shares in 2Q  YoY sales change impacted by PY backlog  YTD share repurchases total $87M at an average price of $21.81 reduction  YTD 4 million s

  4. Slide 4: 2Q Zurn Elkay 2023 Results

    2Q Zurn Elkay 2023 Results Consolidated Results $ in millions 2Q 2023 2Q 2022 Change Net Sales $403 $284 42% Growth from: (1) Core (5%) (2) Pro forma Core (1%) Acquisitions 47% (1) Adjusted EBITDA $87 $64 35% % of Sales 21.6% 22.6% -100 bps (1) Non-GAAP measure defined, reconciled, and discussed in

  5. Slide 5: Zurn Elkay Leverage and Debt

    Zurn Elkay Leverage and Debt Net Debt Leverage Ratio(1) Total Debt ($ millions) 2.5x 1,500 2.1x 2.0x 2.0x 1,000 1,118 1.6x 1.5x 1.5x 500 540 536 557 555 1.4x 1.0x 0 Dec-20 Dec-21 Dec-22 Mar-23 Jun-23 Dec-20 Dec-21 Dec-22 Mar-23 Jun-23 (1) Net Debt Leverage is defined as the ratio of total debt less

  6. Slide 6: Continued momentum in Drinking Water

    Q2 Amplified efforts in 3 key regions where Continued momentum in Drinking Water major investments can be made and awareness around the importance of safe drinking water is high  K-12 market blitzes in states with lead related legislation  Engagement with key school decision makers  Opportunity t

  7. Slide 7: ESG/Sustainability Impact

    ESG/Sustainability Impact SUSTAINABLE PRODUCTS WASTE REDUCTION R&D 74% 9.4 Billion $11.9 Million % revenue from products with Single-use plastic water Investment in engineering, sustainable attributes YTD bottles eliminated YTD research and development YTD ENERGY / GHG REDUCTION COMMUNITY DONATIONS

  8. Slide 8: Zurn Elkay Outlook – 3Q CY23

    Zurn Elkay Outlook – 3Q CY23 September Quarter (3Q)  Total net sales between $390 million and $400 million…outlook 3Q ‘22 Pro Forma Sales assumes the following proforma sales growth:  Non-residential sales growth up + low-single digits, inclusive of prior year backlog reduction $418 - $24  Reside

  9. Slide 9: Zurn Elkay Outlook – Full Year

    Zurn Elkay Outlook – Full Year Full Year 2023 2023 EBITDA Margin  Adjusting full year sales and EBITDA range (2) :  Total net sales between $1,525 million and $1,550 million…outlook assumes the following proforma sales growth: 23.8% 20.6%  Non-residential sales growth + mid-single digits  Reside

  10. Slide 10: Thank You

    THANK YOU zUrn ELKAY —_— ___

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