Slide 1: Q2 Earnings Update
Q2 Earnings Update August 1, 2024 www.middleby.com 1
Slide 2: Middleby Segment Summary
MIDDLEBY SEGMENT SUMMARY Three Industry-Leading Foodservice Platforms 2024 YTD PROFORMA REVENUE BY SEGMENT * Food Processing • 120+ industry-leading brands 18% • Three highly synergistic foodservice segments Commercial 63% Residential 19% • Technology and innovation leader • Differentiated go-to-mar
Slide 3: Five-Year Comparative Operating Performance
FIVE-YEAR COMPARATIVE OPERATING PERFORMANCE SALES (BN) ADJUSTED EBITDA (MM) ADJUSTED EBITDA MARGIN $3.9 $862 22.1% 20.9% $2.7 $569 +44% +51% 2018 Q2 2024 (LTM) 2018 Q2 2024 (LTM) 2018 Q2 2024 (LTM) ADJUSTED EPS ROLLING 5-YR FREE CASH FLOW (BN) LEVERAGE RATIO $9.30 $2.2 2.8x $6.35 2.3x $1.3 +46% +68%
Slide 4: Financial Results
FINANCIAL RESULTS Results & Outlook Commentary Q2 2024 Financial Results • Organic revenue growth by segment: (in millions, except percentages) Q2 ‘24 Q2 ’23 Change • Commercial Foodservice -3.9% • Residential Kitchen -6.7% Net Sales $991.6 $1,040.0 -4.7% • Food Processing -5.7% Gross Profit 379.6 3
Slide 5: Commercial Foodservice
COMMERCIAL FOODSERVICE Q2 2024 Financial Results Results & Outlook Commentary (in millions, except percentages) Q2 ‘24 Q2 ’23 Change • Challenging comparison given Q2 ’23 record revenues Net Sales $619.4 $645.7 -4.1% • Margins grew versus prior year and Adjusted EBITDA 174.2 179.4 -2.9% sequentially
Slide 6: Residential Kitchen
RESIDENTIAL KITCHEN Q2 2024 Financial Results Results & Outlook Commentary (in millions, except percentages) Q2 ‘24 Q2 ’23 Change • Margins grew sequentially over Q1 ’24 despite continued headwinds Net Sales $192.8 $205.6 -6.2% • Record number of new product launches in Adjusted EBITDA 17.5 28.2 -37
Slide 7: Food Processing
FOOD PROCESSING Q2 2024 Financial Results Results & Outlook Commentary (in millions, except percentages) Q2 ‘24 Q2 ’23 Change • Margins grew as compared to prior year and sequentially from Q1 ’24 Net Sales $179.4 $188.7 -4.9% • International revenue growth driven by Adjusted EBITDA 43.0 41.7 3.1% pr
Slide 8: Debt and Liquidity
DEBT AND LIQUIDITY Q2 2024 Leverage Ratio (in millions) Liquidity Commentary Cash $459.5 • QTD operating cash flows were $150 million; Debt $2,404.2 record high for a second quarter • Quarter-end borrowing capacity was Net Debt* $2,040.5 approximately $2.9 billion LTM EBITDA* $890.3 • 62% of our deb
Slide 9: EBITDA Margin Progression and Targets
EBITDA MARGIN PROGRESSION AND TARGETS Key Drivers Segment 2021 2022 2023 Target ▪ Innovation and sales mix Commercial 25.1% 26.2% 27.7% 30% ▪ Acquisition integration ▪ Supply-chain initiatives Residential 20.9% 17.1%* 12.1% 25% ▪ Operational investments Food Processing 22.4% 22.1% 24.9% 25% ▪ Price-
Slide 10: Strategic M&A Focus
STRATEGIC M&A FOCUS Recent M&A Activity Strategic Investment Themes • Middleby has completed 29 transactions since the beginning of 2020, many of • Automation, IoT and Digital Controls which have targeted key technologies and long-term growth trends • Ice and Beverage Platform Expansion • The enhanc
Slide 11: New Product Spotlight
NEW PRODUCT SPOTLIGHT Middleby Precooked Bacon Line Automated combing/ decombing • Middleby is now a significant player in the Vision based precooked and raw bacon production water jet trimming • Middleby precooked bacon line produce a 14s servo press for belly better tasting and visually appealing
Slide 12: New Product Spotlight
NEW PRODUCT SPOTLIGHT MP Equipment – The Thoroughbreader • Three mode breading system for poultry, all other proteins and non-protein food items – Flat, Drum, J Crumb • Best-in-class breading coverage • Saves up to 10% of breading product • Reduces product change over downtime by 45% - no reconfigur
Slide 13: New Product Spotlight
NEW PRODUCT SPOTLIGHT MP Equipment – Endurance Fryer with MicronPro Filtration MP Endurance Fryer • Extends oil life by 13x – 480 hour between oil changes vs. 36 hours • Combined system saves up to $500k per year in oil costs • Provides for safer operating environment with low operation pressure 10