Slide 1: Fourth Quarter 2022 Supplemental
Fourth Quarter 2022 Supplemental 1
Slide 2: Cautionary Statement Forward-Looking Information
Cautionary Statement Forward-Looking Information This communication contains forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding global economic conditions,
Slide 3: 4Q as expected with strong operating performance
4Q as expected with strong operating performance Continued strong sales growth Positive OI growth with organic OI growth accelerating to double-digits Expect a strong performance in 2023 with further sequential improvement Expanded cost savings program, focused on Institutional and Healthcare ▪ Repo
Slide 4: 4Q Overview
4Q Overview ▪ Sales growth remained very strong with reported sales +9% and acquisition adjusted fixed currency sales +12% o Total pricing +13% o As expected, volume & mix -1% due to softening demand, particularly in Europe ▪ Double-digit acquisition adjusted fixed currency growth in Institutional &
Slide 5: 2023 and 1Q Outlook
2023 and 1Q Outlook 2023 1Q ▪ We enter 2023 from a position of strength and continue to expect to deliver performance that improves despite a challenging macro environment characterized by high delivered product costs and easing demand. In addition, higher interest expense and currency translation a
Slide 6: Estimated EPS Impact From Interest and Currency
Estimated EPS Impact From Interest and Currency 6 (1) See slide 5 for special gains and charges expectations (2) 1Q 23 selected non-operating items represent estimated year-over-year impact to EPS from interest and currency 1Q 23 Forecast EPS YoY % Organic OI1 15% - 25% Selected Non-Operating Items2
Slide 7: 4Q 2022 Sales Growth Detail
4Q 2022 Sales Growth Detail Amounts in the tables above may reflect rounding. Acq. Adj. excludes sales to ChampionX post-separation. 7
Slide 8: Global Industrial Segment – Water and Food & Beverage
Global Industrial Segment – Water and Food & Beverage Food & Beverage All sales figures are acquisition adjusted fixed currency unless otherwise noted 8 Sales +14% Sales +17% Water Q1: Expect continued robust sales growth driven by strong pricing and new business wins ▪ Robust sales growth driven by
Slide 9: Global Industrial Segment – Downstream and Paper
Global Industrial Segment – Downstream and Paper Downstream Paper All sales figures are acquisition adjusted fixed currency unless otherwise noted 9 Sales +8% Sales +13% Q1: Expect continued robust sales growth as strong pricing and new business wins more than offset comparisons to strong additive s
Slide 10: Global Institutional & Specialty Segment
Global Institutional & Specialty Segment Institutional Specialty All sales figures are acquisition adjusted fixed currency unless otherwise noted 10 Sales +11% Sales +9% ▪ Strong sales growth driven by accelerating pricing and new business wins, which together continue to benefit from our innovative
Slide 11: Global Healthcare & Life Sciences Segment
Global Healthcare & Life Sciences Segment Healthcare Life Sciences All sales figures are acquisition adjusted fixed currency unless otherwise noted Q1: Expect modest sales growth reflecting continued good pricing 11 Sales +5% Sales +18% ▪ As expected, sales growth improved reflecting accelerated pri
Slide 12: Other Segment
Other Segment Pest Elimination All sales figures are acquisition adjusted fixed currency unless otherwise noted 12 Sales +10% ▪ Led by strong growth across food retail, restaurants, hospitality, and food & beverage o Growth benefited from accelerating pricing and continued robust new business wins,
Slide 13: Consolidated Margin Performance
Consolidated Margin Performance ▪ Accelerating pricing was more than offset by a significant increase in delivered product costs inflation and unfavorable mix ▪ Year-over-year decline in adjusted gross margin continued to ease sequentially ▪ Improvement driven by sales leverage that more than offset
Slide 14: Segment Operating Income Performance
Segment Operating Income Performance ▪ Acquisition adjusted fixed currency operating income increased 7% as accelerating pricing overcame significantly higher delivered product costs, investments in the business, and unfavorable mix ▪ Year-over-year decline in acquisition adjusted fixed currency ope
Slide 15: 4Q 2022 Balance Sheet / Cash Flow
4Q 2022 Balance Sheet / Cash Flow * EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA is defined as the sum of earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as the sum of EBITDA and special (gains) and charges impacting EBITDA. The inputs to EBITDA
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures 16
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures 17
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures 18
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures 19
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures 20
Slide 21: Non-GAAP Financial Information
Non-GAAP Financial Information 21 Non-GAAP Financial Information: This communication and certain of the accompanying tables include financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures inc
Slide 22: Non-GAAP Financial Information (Cont.)
Non-GAAP Financial Information (Cont.) 22 Non-GAAP Financial Information (Continued): Our non-GAAP adjusted financial measure for net sales excludes 2021 Purolite sales. Our non-GAAP adjusted financial measures for cost of sales, gross profit, gross margin, operating income, other (income) expense a