A.o. Smith Corporation · NYSE:AOS
A.o. Smith — Smith A O — Baird's 2020 Global Industrial Conference
8 slides from A.o. Smith's conference presentation, Nov 10, 2020
Slide 1: Baird's 2020 Global Industrial Conference
Exhibit 99.1 Baird’s 2020 Global Industrial Conference Kevin Wheeler Chairman, President and CEO
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of words such as “may,” “will,” “expect,” “i
Slide 3: Who We Are
Who We Are $3.0B Annual Sales 15,100 Employees GLOBAL MANUFACTURER of residential and commercial water heaters, boilers and 23 Manufacturing Facilities water treatment products 3
Slide 4: Compelling Investment Thesis
Compelling Investment Thesis Market leader Stable/growing U.S. Strength of premium 5 year adjusted EPS Strong balance sheet replacement market; brand, distribution, CAGR through 2019 and cash flow to operating leverage manufacturing and = 12.7% support future from incremental new innovation provide
Slide 5: Corporate Snapshot
Corporate Snapshot Segment Revenue Products • Water Heaters • Water Treatment • Boilers Brands Full Year 2019 North America 69% Rest of World 31% North America ROW 5
Slide 6: M&A Criteria and Focus
M&A Criteria and Focus Accretive to ROIC in excess of Meet risk adjusted Margin accretion earnings in the cost of capital by IRR hurdle rates with growth rates first year third year higher than U.S. GDP Geographic Growth Expand / Grow the Core Adjacencies . High Growth Markets New Products & . Water
Slide 7: Pricing Update
Pricing Update • Steel costs, freight costs and labor costs have increased over the past 90 days. In response, we announced a price increase at various levels, depending on the product, on the majority of our U.S. water heater products, effective February 1, 2021. 7
Slide 8: (<6 Smith.
(<6 Smith. Innovation has a name.
Smith A O — Baird's 2020 Global Industrial Conference on 6ix