Slide 1: First Quarter 2019 Earnings Conference Call
First Quarter 2019 Earnings Conference Call May 7, 2019 Louis Pinkham Jon Schlemmer Chief Executive Officer Chief Operating Officer Rob Rehard Robert Cherry Vice President Vice President Chief Financial Officer Business Development & Investor Relations Creating a better tomorrow™… ©2019 Regal Beloit
Slide 2: Appendix Non-GAAP Reconciliations: Adjusted Diluted EPS
Appendix Non-GAAP Reconciliations ADJUSTED DILUTED EARNINGS PER SHARE Three Months Ended Mar 30, Mar 31, 2019 2018 GAAP Diluted Earnings Per Share $ 1.99 $ 1.31 Restructuring and Related Costs 0.04 0.03 (Gain) Loss on Business Divested and Assets to be Exited (0.59) — Net Income from Businesses Dive
Slide 3: Appendix Non-GAAP Reconciliations: Adjusted Income from Operations
Appendix Non-GAAP Reconciliations Three Months Ended Commercial & Power Transmission ADJUSTED INCOME FROM OPERATIONS Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Mar 30, Mar 31, Mar 30, Mar 31, Mar 30, Mar 31, Mar 30, Mar 31, 2019 2018 2019 2018 2019 2018 2019 201
Slide 4: Appendix Non-GAAP Reconciliations: Adjusted Net Sales
Appendix Non-GAAP Reconciliations Three Months Ended Commercial & Power Transmission ADJUSTED NET SALES Industrial Systems Climate Solutions Solutions Total Regal (Dollars in Millions) Mar 30, Mar 31, Mar 30, Mar 31, Mar 30, Mar 31, Mar 30, Mar 31, 2019 2018 2019 2018 2019 2018 2019 2018 Net Sales $
Slide 5: Appendix Non-GAAP Reconciliations: Fiscal 2018 First Quarter Ongoing Business
Appendix Non-GAAP Reconciliations The following tables outline the first and second quarter 2018 net sales and income from operations illustrating the impact of businesses divested and to be exited, which can be used to compare to Regal's 2019 guidance and actual performance. Commercial Power & Indu
Slide 6: Appendix Non-GAAP Reconciliations: Fiscal 2018 Third and Fourth Quarter Ongoing Business
Appendix Non-GAAP Reconciliations The following tables outline the third and fourth quarter 2018 net sales and income from operations illustrating the impact of businesses divested and to be exited, which can be used to compare to Regal's 2019 guidance and actual performance. Commercial Power & Indu
Slide 7: Appendix Non-GAAP Reconciliations: Fiscal 2018 Full Year Ongoing Business
Appendix Non-GAAP Reconciliations The following tables outline the full year 2018 net sales and income from operations, and the full year adjusted diluted earnings per share, illustrating the impact of businesses divested and to be exited, which can be used to compare to Regal's 2019 guidance and ac
Slide 8: Appendix Non-GAAP Reconciliations: Adjusted Effective Tax Rate
Appendix Non-GAAP Reconciliations ADJUSTED EFFECTIVE TAX RATE Three Months Ended Mar 30, Mar 31, 2019 2018 Income before Taxes $ 108.0 $ 75.0 Provision for Income Taxes 21.2 15.7 Effective Tax Rate 19.6% 20.9% Income before Taxes $ 108.0 $ 75.0 (Gain) Loss on Business Divested and Assets to be Exite
Slide 9: Appendix Non-GAAP Reconciliations: Free Cash Flow
Appendix Non-GAAP Reconciliations Three Months FREE CASH FLOW Ended (Dollars in Millions) Mar 30, Mar 31, 2019 2018 Net Cash Provided by Operating Activities $ 18.3 $ 42.5 Additions to Property Plant and Equipment (20.2) (19.3) Free Cash Flow $ (1.9) $ 23.2 Creating a better tomorrow™… ©2019 Regal B
Slide 10: Appendix Non-GAAP Reconciliations: Organic Sales Growth
Appendix Non-GAAP Reconciliations ORGANIC SALES GROWTH Three Months Ended (Dollars in Millions) Commercial & Power Industrial Climate Transmission Systems Solutions Solutions Total Regal Net Sales Three Months Ended Mar 30, 2019 $ 380.3 $ 263.3 $ 210.2 $ 853.8 Net Sales from Business Acquired (31.7)
Slide 11: Appendix Non-GAAP Reconciliations: Total Net Debt/Adjusted EBITDA
Appendix Non-GAAP Reconciliations TOTAL NET DEBT/ADJUSTED EBITDA (Dollars in Millions) LTM Mar 30, 2019 Net Income $ 263.3 Plus: Taxes 61.9 Plus: Interest Expense 55.8 Less: Interest Income (2.8) Plus: Depreciation and Amortization 141.9 Plus: Restructuring and Related Costs 8.3 Plus: Purchase Accou
Slide 12: Appendix Regal Shipping Days
Appendix Regal Shipping Days 1Q 2Q 3Q 4Q FY 2014 63 63 63 64 253 2015 64 63 64 59 250 2016 64 64 63 60 251 2017 64 63 63 60 250 2018 63 64 63 61 251 2019 63 63 63 61 250 Regal operates on a 52/53 week fiscal year ending on the Saturday closest to December 31 Fiscal Years 2015, 2016, 2017, 2018 a