Slide 1: Second Quarter Earnings Call
SECOND QUARTER EARNINGS CALL July 25, 2024
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 differ from anticipate
Slide 3: Financial Results
FINANCIAL RESULTS Statement of Earnings Second Quarter June Year to Date $ in millions except per share amounts 2024 2023 Change 2024 2023 Change (1) Net earnings and Net Sales $ 553.2 $ 559.6 (1)% $1,045.4 $1,089.3 (4)% diluted net earnings per share for 2024 and 2023 have been adjusted to Gross Pr
Slide 4: Net Sales
NET SALES Components of Net Sales Change 2024 Second Quarter Segment Region Contractor Industrial Process Americas EMEA Asia Pacific Consolidated Volume and Price 6% (4)% (9)% 5% (5)% (16)% (1)% Currency (1)% (1)% 0% 0% (1)% (2)% 0% Total 5% (5)% (9)% 5% (6)% (18)% (1)% 2024 June Year to Date Segmen
Slide 5: Operating Earnings
OPERATING EARNINGS Second Quarter June Year to Date 2023 Operating Earnings, as reported ($M and % of sales) $ 157 28 % $ 314 29 % Currency translation (2) 0 (3) 0 Cost, price and volume 12 2 (7) 1 Volume effect on expense leverage (6) (1) (10) (2) 2024 Operating Earnings, as reported ($M and % of s
Slide 6: Second Quarter 2024
SECOND QUARTER 2024 • Down 1 percent from second quarter 2023. Currency translation rates Net Sales had no significant impact. • Margin rate up 2 percentage points compared to second quarter 2023. Gross Margin > Lower product cost and realized pricing. • Up $4 million compared to second quarter 2023
Slide 7: June Year to Date 2024
JUNE YEAR TO DATE 2024 • Down 4 percent from June 2023 year to date. Currency translation rates Net Sales had no significant impact. • Margin rate up 1 percentage point compared to the same period in 2023. Gross Margin > Realized pricing and lower product cost. Operating • Down $19 million compared
Slide 8: 2024 Outlook
2024 OUTLOOK Constant currency basis and excluding acquisitions completed in the prior 12 months Americas EMEA Asia Pacific Total Current Sales Growth Q2 2024 5% Sales Growth Q2 2024 (5%) Sales Growth Q2 2024 (16%) Sales Growth Q2 2024 (1%) Environment June 2024 YTD (1%) June 2024 YTD (3%) June 2024
Slide 9: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY Net Earnings, as Adjusted, and Cash from Operating Activities $ in millions $209 $191 $160 $137 $124 $127 $129 $131 $137 $132 $139 $117 $115 $105 $113 $119 $104 $91 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Net Earnings, as Adjusted Cash from Operating Activites O
Slide 10: Other Discussion Items
OTHER DISCUSSION ITEMS • Capital expenditure expectations of approximately $120 million in 2024, Cap Ex including approximately $70 million in facility expansion projects • Unallocated corporate expenses in 2024 are expected to be approximately Expenses $41- $44 million • Share repurchases of 224,00
Slide 11: Contractor Segment Results
CONTRACTOR SEGMENT RESULTS June YTD 2024 Contractor Segment $ in millions Second Quarter June Year to Date Net Sales as % of Graco 2024 2023 Change 2024 2023 Change Net Sales Americas $ 205 $ 189 9% $ 370 $ 373 (1)% EMEA 44 48 (8) 91 91 1 48% Asia Pacific 20 19 7 38 38 (1) Total $ 269 $ 256 5% $ 499
Slide 12: Contractor Segment Results: Operating Margins
CONTRACTOR SEGMENT RESULTS Change in % of net sales Second Quarter June Year to Date 2023 Operating Earnings 27 % 28 % Cost, price and volume 4 3 Volume effect on expense leverage 0 (1) 2024 Operating Earnings 31 % 30 % Contractor Segment Net Sales and Operating Margins Contractor Segment Operating
Slide 13: Industrial Segment Results
INDUSTRIAL SEGMENT RESULTS June YTD 2024 Industrial Segment $ in millions Second Quarter June Year to Date Net Sales as % of Graco 2024 2023 Change 2024 2023 Change Net Sales Americas $ 72 $ 66 10% $ 134 $ 129 4% EMEA 48 49 (3) 95 97 (3) Asia Pacific 36 49 (27) 69 88 (21) Total $ 156 $ 164 (5)% $ 29
Slide 14: Industrial Segment Results: Operating Margins
INDUSTRIAL SEGMENT RESULTS Change in % of net sales Second Quarter June Year to Date 2023 Operating Earnings 34 % 35 % Currency Translation 0 (1) Product and channel mix 2 1 Volume effect on expense leverage (2) (2) 2024 Operating Earnings 34 % 33 % Industrial Segment Net Sales and Operating Margins
Slide 15: Process Segment Results
PROCESS SEGMENT RESULTS June YTD 2024 Process Segment $ in millions Second Quarter June Year to Date Net Sales as % of Graco 2024 2023 Change 2024 2023 Change Net Sales Americas $ 87 $ 92 (5)% $ 166 $ 176 (6)% EMEA 17 18 (9) 34 37 (8) 24% Asia Pacific 24 30 (20) 48 61 (22) Total $ 128 $ 140 (9)% $ 2
Slide 16: Process Segment Results: Operating Margins
PROCESS SEGMENT RESULTS Change in % of net sales Second Quarter June Year to Date 2023 Operating Earnings 31 % 31 % Volume effect on expense leverage (2) (2) 2024 Operating Earnings 29 % 29 % Process Segment Net Sales and Operating Margins Process Segment Operating Earnings QTD $200 M 40% 35% ($1M)
Slide 17: Adjusted Financial Results
ADJUSTED FINANCIAL RESULTS Financial results have been 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 ca
Slide 18: Worldwide Leader in Fluid Handling
WORLDWIDE LEADER IN FLUID HANDLING MOVE • MEASURE • MIX • CONTROL • DISPENSE • SPRAY