Slide 1: 1st Quarter 2022 Earnings Conference Call
////////////////// 1st Quarter 2022 Earnings Conference Call April 28, 2022
Slide 2: Safe Harbor
Safe Harbor ////////////////// Today’s presentation includes forward-looking statements that reflect management’s current expectations about the Company’s future business and financial performance. These statements are subject to certain risks and uncertainties that could cause actual results to dif
Slide 3: Conference Call Logistics
Conference Call Logistics ////////////////// The release, accompanying slides and replay webcast are available online at www.graco.com Telephone replay will be available after 2 p.m. ET April 28, 2022. The replay by telephone will be available through May 5, 2022. ▶ 855-859-2056 – Conference ID #246
Slide 4: Financial Results
Financial Results ////////////////// Statement of Earnings First Quarter $ in millions except per share amounts 2022 2021 Change Net Sales $ 494.3 $ 454.1 9% Gross Profit 254.5 247.3 3% % of Net Sales 51.5% 54.5% (3.0) pts Operating Earnings 128.4 128.3 0% % of Net Sales 26% 28% (2) pts Net Earnings
Slide 5: Financial Results Adjusted for Comparability
Financial Results Adjusted for Comparability ////////////////// Excess tax benefit from stock option exercises has caused fluctuation in the Company’s financial results. Excluding the impact of this benefit presents a more consistent basis for comparison of financial results. A calculation of the no
Slide 6: Net Sales
Net Sales ////////////////// Components of Net Sales Change 2022 First Quarter Segment Region Industrial Process Contractor Americas EMEA Asia Pacific Consolidated Volume and Price 14 % 26 % 1% 11 % 0% 22 % 10 % Acquisitions 0% 0% 1% 0% 2% 0% 1% Currency (3)% 0% (1)% 0% (6)% (2)% (2)% Total 11 % 26
Slide 7: Operating Earnings
Operating Earnings ////////////////// First Quarter 2021 Operating Earnings, as Reported ($M and % of sales) $ 128 28 % Translation effect (4) 0 Product cost, pricing, sales volume 13 (3) Volume effect on expense leverage (9) 1 2022 Operating Earnings, as Reported ($M and % of sales) $ 128 26 % Oper
Slide 8: First Quarter 2022
First Quarter 2022 ////////////////// ► Up 9 percent from 2021, up 11% at consistent translation Net Sales rates. Sales from acquired businesses contributed 1 percentage point ► Margin rate down 3 percentage points from first quarter 2021 Realized pricing not enough to offset the unfavorable impac
Slide 9: Outlook
Outlook ////////////////// Constant currency basis and excluding acquisitions completed in the prior 12 months Americas EMEA Asia Pacific Total Net Sales Change Net Sales Change Net Sales Change Net Sales Change Current Q1 2022 10% Q1 2022 0% Q1 2022 22% Q1 2022 10% Environment Net Sales Change Indu
Slide 10: Cash Flow and Liquidity
Cash Flow and Liquidity ////////////////// Net Earnings, as Adjusted, and Cash from Operating Activities $ in millions $131 $137 $120 $118 $116 $102 $106 $102 $102 $108 $100 $100 $99 $89 $65 $62 $54 $31 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Net Earnings, as Adjusted Cash from Operati
Slide 11: Other Discussion Items
Other Discussion Items ////////////////// Effective January 1, 2022, our high performance coatings and foam product offerings Organizational within the Industrial segment were realigned and are now managed under the Structure Contractor segment. Prior year segment information restated to conform to
Slide 12: Industrial Segment Results
Industrial Segment Results ////////////////// $ in millions First Quarter March 2022 Industrial Segment Net Sales as % of Graco 2022 2021 Change Net Sales Americas $ 54 $ 46 17% EMEA 48 45 6 Asia Pacific 43 39 11 Total $ 145 $ 130 11% 29% Operating Earnings $ 53 $ 42 24% % of sales 36 % 33 % Compone
Slide 13: Operating Margins - Industrial Segment
Industrial Segment Results ////////////////// Change in % of net sales First Quarter 2021 Operating Earnings 33 % Currency Translation (1) Volume effect on expense leverage 4 2022 Operating Earnings 36 % Industrial Segment Net Sales and Operating Margins Industrial Segment Operating Earnings QTD $25
Slide 14: Process Segment Results
Process Segment Results ////////////////// $ in millions First Quarter March 2022 Process Segment Net Sales as % of Graco 2022 2021 Change Net Sales Americas $ 68 $ 57 20% EMEA 17 14 16 23% Asia Pacific 30 20 49 Total $ 115 $ 91 26% Operating Earnings $ 27 $ 22 26 % % of sales 24 % 24 % Components o
Slide 15: Operating Margins - Process Segment
Process Segment Results ////////////////// Change in % of net sales First Quarter 2021 Operating Earnings 24 % Currency translation (1) Product cost and product and channel mix (3) Volume effect on expense leverage 4 2022 Operating Earnings 24 % Process Segment Net Sales and Operating Margins Proces
Slide 16: Contractor Segment Results
Contractor Segment Results ////////////////// $ in millions First Quarter March 2022 Contractor Segment Net Sales as % of Graco 2022 2021 Change Net Sales Americas $ 171 $ 162 5% EMEA 41 50 (18) 48% Asia Pacific 22 21 11 Total $ 234 $ 233 1% Operating Earnings $ 59 $ 71 (17)% % of sales 25 % 31 % Co
Slide 17: Operating Margins - Contractor Segment
Contractor Segment Results ////////////////// Change in % of net sales First Quarter 2021 Operating Earnings 31 % Currency translation (1) Product cost and product and channel mix (4) Volume effect on expense leverage (1) 2022 Operating Earnings 25 % Contractor Segment Net Sales and Operating Margin
Slide 18: Worldwide Leaders in Fluid Handling
MOVE / MEASURE / MIX / CONTROL / DISPENSE / S P R AY WORLDWIDE LEADERS IN FLUID HANDLING www.graco.com