Slide 1: Earnings Conference Call First Quarter 2022
Earnings Conference Call First Quarter 2022 April 21, 2022 – 8:00am CT Exhibit 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Measures
2 Forward-Looking Statements and Non-GAAP Measures We want to remind everyone that our comments may contain forward-looking statements that are inherently subject to uncertainties and risks, including the impacts of the coronavirus (COVID-19) on the global economy and on our customers, suppliers, em
Slide 3: Summary Corporate Q1 Results
3 Summary Corporate Q1 Results Q1 2022 Highlights and Comments Revenue change (Y-o-Y) All-in Organic(1) 10% 9% Y-o-Y growth in four of five segments Q1 FX impact: -2%; acquisitions (net of divestitures) +3% Bookings change (Y-o-Y) All-in(2) Organic(2) -3% -4% Q1 book-to-bill(2): 1.10; >1 acros
Slide 4: Q1 2022 Performance Highlights
4 Free Cash Flow(1) Incremental non-cash AD&A(1) drove 90 bps of margin decline -10% of Adjusted earnings(1) Q1 2022 Performance Highlights Organic(1) Revenue growth: 7% - 9% Adjusted Diluted EPS(1): $8.45 - $8.65 Organic Revenue(1) Book-to-bill(2): 1.10, >1 across all segmentsOrganic growth in four
Slide 5: Segment Revenue and Adjusted EBIT Performance Commentary
5 Segment Revenue ($M) / Organic Change % Adj. EBIT % / bps ∆ Y-o-Y Performance Commentary DEP $488 +15% 13.6% -340 bps Strength in waste handling, vehicle services, and industrial winches and automation. Aerospace & defense down on constrained labor availability and supply chain disruptions Neg
Slide 6: Q1 2022 Revenue and Bookings Bridge
6 Q1 2021 Revenue & Bookings Q1 2022 Revenue Change in Organic Revenue(1): +$174M, or +9.3% FXDII Q1 2022DCEF DPPS DCST ACQ./ DISP. (2) ACQ./ DISP. (3) Q1 2021 DEP DPPSDCEF DII DCST FX Q1 2022 Note: $ in millions. Numbers may not add due to rounding Q1 2022 Bookings(4) Change in Organic Bookings(4):
Slide 7: Q1 2022 Adjusted Segment EBIT and Adjusted Net Earnings
7 ADJ. EBIT DPPSD&A (1) ADJ. EBITDA DEP DCEF D&A (2)DCSTDII ADJ. EBITDA ADJ. EBIT Q1 2022 Adjusted Segment EBIT and Adjusted Net Earnings GAAP EARNINGS RIGHT SIZING ACQ. AMORT. ADJ. EARNINGS SEGMENT EBIT (EX. AD&A) RIGHT SIZING CORP. EXPENSE INT./TAX EXPENSE ADJ. EARNINGS ACQ. AMORT.(4) LOSSES ON SA
Slide 8: Q1 2022 Free Cash Flow
8 Q1 2022 Free Cash Flow 12.3% (1) Includes stock-based compensation, non-cash foreign currency translation losses reclassified to earnings, and changes in other current and non-current assets and liabilities (2) Non-GAAP measures (reconciliations and definitions in appendix) Note: Numbers may not a
Slide 9: Segment Demand Trends and Outlook
9 Segment Demand trends ’22 Organic Growth(2) Outlook Price – Cost Inputs availability Comments DEP DD Favorable market outlook and healthy backlog across all businesses Sequential margin improvement through the year as price / materials spread and productivity improve DCEF LSD Difficult top-l
Slide 10: Bookings and Backlog Trends
10 1.2 0.7 0.2 0.4 0.8 Bookings and Backlog Trends (1) See performance measure definitions in appendix Note: Numbers may not add due to rounding Backlog(1) Growth 3.4 $B Sequential Δ Y-o-Y Δ DEP +6% +48% +3% 1.11 Q1 ’22 Backlog(1) By Segment Bookings(1) Org. Y-o-Y Δ B-t-B(1) Comments DCEF +11% +79%
Slide 11: FY 2022 Guidance
11 FY 2022 Guidance (1) Non-GAAP measure (definition and/or reconciliation in appendix) (2) Acquisition-related depreciation and amortization, including inventory step-up EPS and other Cash Flow Free Cash Flow(1): 13% - 15% of Revenue Capex: $200 – $220 million GAAP EPS: $7.39 - $7.59 Adjust
Slide 12: Appendix
12 Appendix
Slide 13: Organic Revenue and Bookings Bridges
13 Organic Revenue and Bookings Bridges Note: Numbers may not add due to rounding Revenue Bookings 14.6% 3.4% 0.2% -2.7% -1.1% 7.7% 12.6% -14.0% 17.4% -9.4% 9.3% -4.3% 4.4% 4.4% -1.6% -1.4% -2.2% -2.1% Total 9.9% -3.4% Geographic Revenue Growth Factors Q1 2022 9.0% 11.0% 5.8% 18.9% 9.4% 9.3% 4.4% -1
Slide 14: Revenue and Bookings Bridges by Segment
14 Q1 2021 to Q1 2022 Revenue and Bookings Bridges by Segment Note: Numbers may not add due to rounding DEP DCEF DII DPPS DCST Total 428 390 284 394 372 1,868 62 1 (3) 50 65 174 (8) (8) (10) (10) (7) (43) 5 76 1 1 (31) 53 488 458 272 435 399 2,052 DEP DCEF DII DPPS DCST Total 528 423 294 551 537 2,3
Slide 15: Reconciliation of Q1 2022 Net Earnings to Adj. EBIT and Adj. EBITDA
15 Reconciliation of Q1 2022 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing and other costs (2) Q1 2022 includes $12.
Slide 16: Reconciliation of Q1 2021 Net Earnings to Adj. EBIT and Adj. EBITDA
16 Reconciliation of Q1 2021 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing and other costs DEP DCEF DII DPPS DCST To
Slide 17: Reconciliation of Adjusted Net Earnings and Adjusted Diluted EPS
17 Reconciliation of Adjusted Net Earnings to Net Earnings and Adjusted Diluted EPS to Diluted EPS Note: Numbers may not add due to rounding ($ in millions, except per share data) Q1 2022 Q1 2021 Net earnings from continuing operations ($) 226 233 Acquisition-related amortization, pre tax 53 36 Acqu
Slide 18: Backlog by Segment
18 Backlog by Segment Note: Numbers may not add due to rounding ($ in millions) Q1 2022 Q1 2021 Q4 2021 830 563 785 426 239 384 243 199 212 705 539 689 1,218 677 1,174 (2) (1) (0) 3,421 2,216 3,244 Total consolidated backlog Climate & Sustainability Technologies Intercompany eliminations Engineered
Slide 19: Reconciliation of Q1 2022 Adj. EBIT Excluding Incremental AD&A
19 (1) Given the significance of the Q4 2021 acquisitions within the Clean Energy & Fueling segment, we also evaluate a non-GAAP measure that excludes acquisition-related amortization, including inventory step-up, in addition to evaluating Segment EBIT and Adjusted Segment EBIT. This facilitates a m
Slide 20: Reconciliation of Free Cash Flow and EPS to Adjusted EPS
20 Range FY 2022 Guidance for Earnings per Share (GAAP) $7.39 $7.59 Acquisition-related amortization, net $0.91 Rightsizing and other costs, net $0.15 FY 2022 Guidance for Adjusted Earnings per Share (Non-GAAP) $8.45 $8.65 Note: Numbers may not add due to rounding ($ millions) Q1 2022 Q1 2021 Net Ca
Slide 21: Non-GAAP Definitions
21 Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Net Earnings: is defined as net earnings adjusted for the effect of acquisition-related amortization and inventory step-up, rightsizing and other costs/benefits, and gain/loss on dispositions. Adjusted Net Earnings Margin: is defined
Slide 22: Performance Measure Definitions
22 Performance Measure Definitions Definitions of Performance Measures: Bookings represent total orders received from customers in the current reporting period. This metric is an important measure of performance and an indicator of revenue order trends. Organic Bookings represent total orders receiv