Slide 1: 3Q CY20 September Quarter Financial Results
3Q CY20 SEPTEMBER QUARTER FINANCIAL RESULTS October 28, 2020
Slide 2: Cautionary Statement Under the Private Securities Litigation Reform Act
CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT This presentation and discussion contains certain forward-looking statements that are subject to the Safe Harbor and Cautionary language contained in the press release we issued on October 27, 2020, as well as other factors that
Slide 3: 3Q CY20 Performance Update
3Q CY20 PERFORMANCE UPDATE Consolidated Rexnord • 3Q reported net sales decreased (5%) year over year, core growth decreased by (7%) • Adjusted EBITDA(1) decreased by (8%) to $109 million • SCOFR III savings on track to deliver annual structural savings of $20 million as we exit 2021 • Investing in
Slide 4: Capital Allocation Update
CAPITAL ALLOCATION UPDATE Maintaining net debt leverage ratio in 2x – 3x range Leverage ratio of 2.0x at end of September quarter Committed to $0.08 / share quarterly common stock dividend = 1.0% current yield Annual increases in dividend rate are anticipated Allocating $75 million to $150 million t
Slide 5: Expanding Hygienic Market Opportunity
EXPANDING HYGIENIC MARKET OPPORTUNITY $5 Billion Installed Base Manual Products @ Touchless ASP* $2.5 Billion Installed Base Manual Faucets & Flush Valves $0.6 Billion Annual Manual Market @ Touchless ASP* $0.3B Pre-COVID Annual Manual Faucet & Flush Valve Market Significant core growth and market s
Slide 6: Hygienic Growth Model for 2020/2021 & Beyond
HYGIENIC GROWTH MODEL FOR 2020/2021 & BEYOND Touchless Faucets & Flush Valves • Tracking to ~$100 million sales in 2020 • Expect to exit 2020 at $140-150 mm annual run rate • Supply chain capacity >$250 mm annual run rate • Sector leading product availability (3QCY20) • Developing click-to-install s
Slide 7: 3Q CY20 Summary
3Q CY20 SUMMARY 3Q CY20 3Q CY19 Change Net Sales $494 $521 (5%) Growth from: Core (1) (7%) Acquisitions 1% Translation 1% Adjusted EBITDA (1) $109 $118 (8%) % of Sales 22.0% 22.7% (70 bps) (1) Non-GAAP measure defined, reconciled, and discussed in the earnings release included in the Form 8-K filed
Slide 8: 3Q CY20 Platform Results
3Q CY20 PLATFORM RESULTS 3Q CY20 3Q CY19 Change PMC Net Sales $294 $337 (13%) • 8020 product line simplification reduced sales growth by 110 bps Growth from: Core (1) (13%) • Adjusted EBITDA includes approximately $2 million of non- Acquisitions 0% recurring SCOFR 3 expenses Translation 0% • New Kle
Slide 9: December Quarter Planning Guideposts
DECEMBER QUARTER PLANNING GUIDEPOSTS Key 4Q CY20 (December-quarter) guideposts • Sales decline of 7%-11% year over year • Segment Adjusted EBITDA(1) margin* in 21.5%-23% range(2) • Corporate expense of $9 million • Interest expense of $12 million • Depreciation & amortization of $23 million * Total
Slide 10: Cash Flow Outlook
CASH FLOW OUTLOOK Current 9-month interim period 2020 free cash flow expectations • Capital expenditures of approximately $29 million includes SCOFR 3.0 • Cash restructuring of $15-17 million includes SCOFR 3.0 • Cash interest payments of approximately $42 million • Cash tax payments of $45-50 milli
Slide 11: Cash Flow & Balance Sheet
CASH FLOW & BALANCE SHEET Transitioning fiscal year end to December 31 in 2020 – pro forma CY18/CY19 quarterly financials on website (1) Free Cash Flow is defined as Cash from Operations less Capital Expenditures, and is a Non-GAAP measure defined, reconciled, and discussed in the earnings release i