Slide 1: Third Quarter 2024 Earnings Conference Call
Third Quarter 2024 EARNINGS CONFERENCE CALL October 29, 2024 YEARS STRONG © 2024
Slide 2: Forward-Looking Statements & Non-GAAP Disclaimer
Forward-Looking Statements & Non-GAAP Disclaimer Forward-Looking Statements This presentation includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are no
Slide 3: 3Q 2024 Highlights
3Q 2024 Highlights 3Q 2024 results: ▪ Focused execution driving record results $636M +1% ▪ Strength in high-growth markets Sales1 Organic Sales Growth1 ▪ Momentum in equipment continues ▪ Up low double-digit $125M +6% aEBITDA1 Year-over-Year ▪ Improving margins and free cash flow driven by EBX ▪ On-
Slide 4: ESAB Supporting India's Growth
ESAB Supporting India’s Growth ESAB investing in India: ▪ Expanded R&D capabilities ▪ Invested in additional manufacturing capacity New Delhi India Population: 1.4B ▪ Implemented commercial excellence program GDP: $3.5T GDP Growth: ~7% Nagpur Initiated Project Bandhan to create a new Kolkata Mumbai
Slide 5: Built Capabilities To Accelerate Growth
Built Capabilities To Accelerate Growth Built Social Media Studios Developed Innovative Equipment Line-up Automation & Equipment Sales CAGR ▪ New award-winning product introductions +9% ▪ Commercial Excellence program driving automation & equipment growth 2017 2024E New Product ▪ ESAB’s brand image
Slide 6: ESAB 3Q 2024 Financial Summary
ESAB 3Q 2024 Financial Summary ($ Millions) 3Q 20241 3Q 20231 YoY Organic Sales Growth 1% Total Sales $636 $644 (1)% aEBITA $116 $109 6% aEBITA Margin % 18.2% 17.0% 120 bps aEBITDA $125 $118 6% aEBITDA Margin % 19.6% 18.3% 130 bps 3Q Highlights: 3Q 2024 Sales Growth1: Organic 1% ■ Positive organic g
Slide 7: ESAB 3Q 2024 Americas
ESAB 3Q 2024 Americas ($ Millions) 3Q 2024 3Q 2023 YoY Organic Sales Growth 2% Total Sales $289 $306 (6)% aEBITDA $59 $57 4% aEBITDA Margin % 20.6% 18.7% 190 bps 3Q Highlights: 3Q 2024 Sales Growth1: Organic 2% ■ Positive organic growth Price 5% ■ Strong price execution Volume (3)% FX Translation (9
Slide 8: ESAB 3Q 2024 EMEA and APAC
ESAB 3Q 2024 EMEA and APAC 1 ($ Millions) 3Q 20241 3Q 20231 YoY Organic Sales Growth 1% Total Sales $347 $338 3% aEBITDA $66 $61 8% aEBITDA Margin % 18.9% 17.9% 100 bps 3Q Highlights: 3Q 2024 Sales Growth1: Organic 1% ■ Strong execution driving positive volume Price (2)% ■ New products and solutions
Slide 9: Strong Free Cash Flow Reducing Net Leverage
Strong Free Cash Flow Reducing Net Leverage +8% $215M ▪ Robust 3Q cash flow performance $199M ▪ Funded acquisition of Linde Bangladesh ▪ Further strengthened balance sheet ▪ Positioned well to execute compounder strategy 2023 YTD 2024 YTD Net Leverage 2.2x 1.6x Robust cash flow increasing financial
Slide 10: Full Year 2024 Outlook Raised At Mid-Point
Full Year 2024 Outlook Raised At Mid-Point Prior FY 2024 New FY 2024 Financial Metrics Outlook1,2 Outlook1,2 ▪ FY sales outlook Sales $2.56–$2.61B $2.58–$2.61B ▪ Organic growth raised at mid- point to 0.0% - 1.0% Core Organic Growth % (1%)–1% 0%–1% ▪ FX of ~(2.5)% ▪ M&A of ~1.0% aEBITDA $495–$515M $
Slide 11: Summary
Summary Shaping the world we imagineTM for the last 120 years ▪ Commercial excellence driving growth ▪ Expanded margins using EBX ▪ Robust cash flow supporting compounder strategy ▪ Raised 2024 outlook at mid-point Shared Help Each Always Purposeful Every Voice Success Other Win Improving Leadership
Slide 12: Appendix
Appendix Pd ESAB * ESAB CORPORATION =_
Slide 13: Raised Full Year 2024 Outlook At Mid-Point
Raised Full Year 2024 Outlook At Mid-Point ESAB Prior 2024 Outlook1 New 2024 Outlook1 Sales ($B) 2.56 - 2.61 2.58 - 2.61 Total Growth (2.5)% - (0.5)% (1.5)% - (0.5)% Core Organic Growth (1.0)% - 1.0% 0.0% - 1.0% FX (2.5)% ~(2.5)% M&A ~1.0% ~1.0% aEBITDA ($M) 495 - 515 500 - 515 Interest Expense & Ot
Slide 14: Non-GAAP Reconciliation EBITA – 3Q '24 Total & Segments
Non-GAAP Reconciliation EBITA – 3Q '24 Total & Segments1 Dollars in millions Three Months Ended September 27, 2024 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV Net Sales $ 288.8 $ 384.4 $ 673.3 Net Sales attributable to Russia $ — $ 37.7 $ 37.7 Core Net Sales $ 288.8 $ 346
Slide 15: Non-GAAP Reconciliation EBITDA – 3Q '24 Total & Segments
Non-GAAP Reconciliation EBITDA – 3Q '24 Total &Segments1 Three Months Ended September 27, 2024 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV Net Sales $ 288.8 $ 384.4 $ 673.3 Net Sales attributable to Russia $ — $ 37.7 $ 37.7 Core Net Sales $ 288.8 $ 346.8 $ 635.6 Operating
Slide 16: Non-GAAP Reconciliation EBITA – 3Q '23 Total & Segments
Non-GAAP Reconciliation EBITA – 3Q '23 Total & Segments1 Three Months Ended September 29, 2023 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV Net Sales $ 305.8 $ 375.2 $ 681.0 Net Sales attributable to Russia $ — $ 36.9 $ 36.9 Core Net Sales $ 305.8 $ 338.3 $ 644.1 Operating
Slide 17: Non-GAAP Reconciliation EBITDA – 3Q '23 Total & Segments
Non-GAAP Reconciliation EBITDA – 3Q '23 Total & Segments1 Three Months Ended September 29, 2023 ($ Millions) Americas % of NSV EMEA & APAC % of NSV Total ESAB % of NSV Net Sales $ 305.8 $ 375.2 $ 681.0 Net Sales attributable to Russia $ — $ 36.9 $ 36.9 Core Net Sales $ 305.8 $ 338.3 $ 644.1 Operatin
Slide 18: Non-GAAP Reconciliation – Net Income to Adjusted EPS
Non-GAAP Reconciliation – Net Income to Adjusted EPS1 Three months ended ($ Millions, except Per Share Data) September 27, 2024 September 29, 2023 Net income from continuing operations $ 71.0 $ 60.8 Income attributable to noncontrolling interest, net of taxes $ 1.6 $ 1.5 Net income from continuing o
Slide 19: Non-GAAP Reconciliation – Adj. Free Cash Flow
Non-GAAP Reconciliation – Adj. Free Cash Flow Nine months ended ($ Millions) September 27, 2024 September 29, 2023 Net cash provided by operating activities $ 228.5 $ 208.1 Purchases of property, plant and equipment $ (27.1) $ (28.9) Proceeds from the sale of certain properties $ 1.9 $ 2.8 Payments