Slide 1: Second Quarter 2024 Earnings Presentation
Second Quarter 2024 Earnings Presentation July 25, 2024 2Q 2024 Earnings Results 1
Slide 2: Cautionary Statements Regarding Forward-looking Statements
Cautionary Statements Regarding Forward-looking Statements This presentation may contain (and verbal statements made by MSA® Safety Incorporated (“MSA Safety”) may contain) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relat
Slide 3: Non-GAAP Financials
Non-GAAP Financials To supplement our Consolidated Financial Statements presented in accordance with generally accepted accounting principles (“GAAP”), we use, and this presentation includes, certain non-GAAP financial measures. These financial measures include constant currency revenue growth, adju
Slide 4: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights Solid Execution Underpinned by MSA Business System DRIVEN BY OUR PURPOSE BUSINESS HIGHLIGHTS OUR MISSION • Introduced next phase of long-term strategy and 2028 That men and women may work in safety and financial targets at Investor Day that they, their families, and th
Slide 5: 2023 Impact Report
2023 Impact Report Driving Business Growth and Societal Impact Through Our Singular Mission of Safety OUR PRODUCTS AND SOLUTIONS OUR PEOPLE OUR PLANET • Support worker safety • Energize our diverse • Committed to being a and sustainability with workforce around mission good steward of our what we ma
Slide 6: Long-Term Strategy and Targets
Long-Term Strategy and Targets Delivering Innovative Safety Solutions to Protect Workers and Generate Shareholder Value EXECUTING OUR STRATEGY… …TO ACHIEVE OUR 2028 FINANCIAL TARGETS Continue To Be the Leader In Resilient Organic Revenue Growth Premium Safety Solutions + $2.1B – $2.3B Implement Targ
Slide 7: 2Q 2024 Financial Summary
2Q 2024 Financial Summary Healthy Sales Growth and Margin Improvement Net Sales Adjusted Operating Adjusted EPS Income and Margin $2.01 $462MM $108MM $1.83 $447MM $104MM 23.4% 23.2% 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 3% NET SALES GROWTH 23.4% ADJUSTED OPERATING MARGIN 10% ADJUSTED EPS G
Slide 8: 2Q 2024 Free Cash Flow and Financial Leverage
2Q 2024 Free Cash Flow and Financial Leverage Strong Financial Position Enables Increased Capital Returns to Shareholders and Debt Reduction Free Cash Flow Net Leverage 1.0x 1.0x 0.9x $85MM $39MM 2Q 2023 2Q 2024 12/31/2023 3/31/2024 6/30/2024 CASH FLOW GENERATION AND CAPITAL ROBUST BALANCE SHEET WIT
Slide 9: 2024 Outlook
2024 Outlook Maintaining Mid-Single Digit Growth Outlook; Reflecting Solid 1H and Product End Market and Geographic Diversity % NET SALES(1) DIVERSE END MARKETS OPERATING ENVIRONMENT UPDATE POSITIVES FIRE SERVICE • Government fire service + Growing global demand for safety products and • SCBA soluti
Slide 10: Key Takeaways
Key Takeaways 1 2 3 4 5 Strong execution Mission-driven Reliable, Reinvestment in Strong balance in 2Q resulting in culture and diversified base innovation and sheet supports mid single-digit unwavering business drives technology, growth growth, margin commitment to organic growth including strategi
Slide 11: Q&A
Q&A Q1 2024 Earnings Results | 11
Slide 12: Appendix
Appendix Q1 2024 Earnings Results | 12
Slide 13: MSA Safety (NYSE: MSA) Snapshot
MSA Safety (NYSE: MSA) Snapshot Driven by Our Purpose Key Statistics(1) Forefront of Safety Innovation OUR MISSION Steady end market demand, That men and women may work in safety and that $1.8B 48.2% 1 with resilient organic growth and extensive installed base they, their families, and their communi
Slide 14: MSA Safety | Diverse End Markets
MSA Safety | Diverse End Markets Fire Service Energy Utilities Construction Food & Beverage 40+ Million Workers Protected1 Industrial Government Water Transportation Mining PROTECTING WORKERS AROUND THE WORLD ACROSS WIDE VARIETY OF END MARKETS (1) As of December 31, 2023. “Workers Protected” is an e
Slide 15: MSA Safety | Product Categories and Markets
MSA Safety | Product Categories and Markets DETECTION FIRE SERVICE INDUSTRIAL PPE AND OTHER Fixed Gas & Portable Gas SCBA & Connected Protective Apparel Industrial Fall Flame Detection Detection Firefighter & Helmets Head Protection Protection PRODUCT CATEGORY GLOBAL TAM1 ~$4.0B ~$2.5B ~$3.5B4 MARKE
Slide 16: MSA Safety | Our Strategy
MSA Safety | Our Strategy CONTINUE TO BE THE IMPLEMENT APPLY MSA BUSINESS ALLOCATE LEADER IN PREMIUM TARGETED GROWTH SYSTEM TO ENABLE CAPITAL SAFETY SOLUTIONS ACCELERATORS EXCELLENCE EFFECTIVELY • Leverage scale, market • Continue to evolve from • Drive excellence in pricing, • Leverage premier fina
Slide 17: MSA Safety | Our Business System (MBS)
MSA Safety | Our Business System (MBS) BEHAVIORS The way we act and react to changes and challenges • Relentless focus on improving our performance on new product development, SG&A, project management, and global business service PROCESSES How we work with others and apply tools • Working Capital: S
Slide 18: MSA Safety | 2028 Financial Targets
MSA Safety | 2028 Financial Targets MISSION-DRIVEN REINVESTMENT • 3 – 5% organic revenue growth Resilient Organic • Market growth, customer-centric innovation, and commercial + Revenue Growth $2.1B – $2.3B excellence • Macro secular safety trends • Target 30 – 50 bps annually Operating Margin1 + Exp
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Q1 2024 Earnings Results | 19
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Constant Currency Sales Growth (Unaudited) Consolidated Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Industrial Industrial Fire (b) Fire Detection PPE and Net Sales Detection (b) PPE and Net Sales Service (a) Service (a) Other (c) Othe
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Segment Information (Unaudited) (In thousands, except percentage amounts) Am ericas International Corporate Consolidated Three Months Ended June 30, 2024 Net sales to external customers $ 314,711 $ 147,752 $ - $ 462,463 Operating income 99,944 Operating
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Segment Information (Unaudited) (In thousands, except percentage amounts) Am ericas International Corporate Consolidated Six Months Ended June 30, 2024 Net sales to external customers $ 610,249 $ 265,516 $ - $ 875,765 Operating income 180,056 Operating m
Slide 23: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Operating Income and Adjusted Operating Margin (Unaudited) (a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Adjusted Earnings and Adjusted Earnings per Diluted Share (Unaudited) (In thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 % Change 2024 2023 % Change Net income (loss) $ 72,234 $ 67,090 8% $ 130,373 $
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Free Cash Flow (Unaudited) Three Months Ended (In thousands, except percentage amounts) June 30, 2024 2023 Cash flow from operating activities $ 53,302 $ 95,068 Capital expenditures (14,341) (9,920) Free cash flow $ 38,961 $ 85,148 Adjusted earnings 79,6
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited) Twelve Months Ended (In thousands) June 30, 2024 Operating income $ 376,429 Depreciation and amortization 53,671 Restructuring charges 9,355 Currency exchange losses, net 11,524 Net cost
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures R&D Investment (Unaudited) Trailing Twelve Months Twelve Months Ended (In thousands) Six Months Ended June 30, Ended June 30, December 31, 2024 2023 2024 2023 Research and development expense $ 32,988 $ 31,224 $ 69,752 $ 67,988 Capitalized software devel
Slide 28: 2Q 2024 Earnings Results
2Q 2024 Earnings Results 28