Carlisle Companies Incorporated · NYSE:CSL
Carlisle Companies — Q4 2017 Earnings Presentation
20 slides from Carlisle Companies's earnings presentation, Feb 8, 2018
Slide 1: 4th Quarter 2017 Earnings Conference Call
4th Quarter 2017 Earnings Conference Call February 8, 2018
Slide 2: Forward-looking statements; Non-GAAP financial measures
Forward-looking statements During this presentation, we make certain forward-looking statements concerning plans and expectations for Carlisle Companies Incorporated. We caution you that actual events or results may differ materially from our plans and expectations. See our Form 10-Q for third quart
Slide 3: 2017 Full Year Highlights
2017 Full Year Highlights • Record Full Year Net Sales of $4.1B up 11.3% ‒ 5.0% organic net sales growth ‒ CCM sales growth above favorable non-residential construction growth rates ‒ CBF experienced strong top-line growth ‒ 6.4% acquisition growth: Accella, Arbo, Drexel Metals, San Jamar • Record c
Slide 4: 2017 Q4 Highlights
2017 Q4 Highlights • Record Q4 Net Sales up 20% Financial Summary ‒ 7.6% organic net sales growth ($ millions, except per share amounts) Q4 ’17 Q4 ‘16 Δ ‒ CCM sales growth above favorable non- Net Sales $1,071.8 $893.5 +20.0% Operating Income $104.0 $114.7 -9.3% residential market growth rates Incom
Slide 5: Divestiture of Carlisle FoodService Products
Divestiture of Carlisle FoodService Products • Signed definitive agreement to divest FoodService Products to The Jordan Company for $750M • Expect to close within the first quarter of 2018 • Subject to customary closing conditions • Net cash proceeds expected to fund organic sales initiatives and fu
Slide 6: 2017 Q4 Sales Bridge
2017 Q4 Sales Bridge +11.7% +0.7% $1,071.8 Organic by Segment Construction Materials: +9.5% +7.6% Interconnect Technologies: -1.6% FoodService -5.5% Fluid Technology +8.9% $893.5 Brake & Friction +36.4% Q4 '16 Volume/Price Acq F/X Q4 '17 6
Slide 7: 2017 Q4 Operating Margin Bridge
2017 Q4 Operating Margin Bridge +1.5% -1.8% +1.8% -2.0% 12.8% -2.8% +0.2% 9.7% Q4 '16 Volume/Price Mix COS Acq Raw Materials/ Restructuring/ Q4 '17 Other Operating Rationalization Costs Costs 7
Slide 8: Impact of U.S. Tax Cuts and Jobs Act
Impact of U.S. Tax Cuts and Jobs Act • Impact of changes to U.S. tax policy still under evaluation • 2017 FY effective tax rate of 22.0% • 2017 results include ~$53M net positive direct and indirect impact due to: ‒ Benefit of remeasured deferred taxes of ~$90M ‒ One-time toll charges on foreign ear
Slide 9: Carlisle Construction Materials
Carlisle Construction Materials Three Months Ended December 31, Acquisition Price / Volume Exchange (in millions) 2017 2016 Change % Effect Effect Rate Effect Net sales $ 618.7 $ 488.2 26.7 % 16.7 % 9.5% 0.5% Operating income $ 87.7 $ 93.0 (5.7)% Operating margin 14.2 % 19.0 % Items Affecting Compar
Slide 10: Carlisle Interconnect Technologies
Carlisle Interconnect Technologies Three Months Ended December 31, Acquisition Price / Volume Exchange (in millions) 2017 2016 Change % Effect Effect Rate Effect Net sales $ 208.5 $ 210.3 (0.9)% 0.5 % (1.6)% 0.2% Operating income $ 21.9 $ 25.9 (15.4)% Operating margin 10.5 % 12.3% Items Affecting Co
Slide 11: Carlisle Fluid Technologies
Carlisle Fluid Technologies Three Months Ended December 31, Acquisition Price / Volume Exchange (in millions) 2017 2016 Change % Effect Effect Rate Effect Net sales $ 79.0 $ 71.0 11.3 % —% 8.9% 2.4% Operating income $ 3.7 $ 9.3 (60.2)% Operating margin 4.7 % 13.1 % Items Affecting Comparability $ 3.
Slide 12: Carlisle Brake & Friction
Carlisle Brake & Friction Three Months Ended December 31, Acquisition Price / Volume Exchange (in millions) 2017 2016 Change % Effect Effect Rate Effect Net sales $ 84.3 $ 60.7 38.9% —% 36.4% 2.5% Operating income $ (1.2) $ (3.0) 60.0% Operating margin (1.4)% (4.9)% Items Affecting Comparability $ 2
Slide 13: Carlisle FoodService Products
Carlisle FoodService Products Three Months Ended December 31, Acquisition Price / Volume Exchange (in millions) 2017 2016 Change % Effect Effect Rate Effect Net sales $ 81.3 $ 63.3 28.4 % 33.9% (5.5)% —% Operating income $ 9.8 $ 7.2 36.1 % Operating margin 12.1 % 11.4% Items Affecting Comparability
Slide 14: Restructuring, Facility Rationalization, Acquisition Related Costs
Restructuring, Facility Rationalization, Acquisition Related Costs $ millions Q4 2017 FY 2017 Q1 2018 Forecast FY 2018 Forecast CCM $5.8 $9.5 ~$1-2 ~$5 CIT $3.9 $18.0 ~$1-2 ~$7-8 CFT $3.5 $12.6 ~$1 ~$1-2 CBF $2.1 $5.1 ~$1-2 ~$10-12 CFS $0.0 $4.1 N/A N/A Corp $0.3 $2.5 ~$1 ~$1 Total OI Pre-Tax $15.6
Slide 15: Focused on Capital Structure Optimization
Focused on Capital Structure Optimization Debt Maturity Schedule • Cash on Hand of $380M as of 12/31/17 • $1B available under revolver • $92M capital returned YTD to shareholders in Senior quarterly dividends Note $600M • Repurchased 2.7M shares YTD 3.75% • 2.1M share repurchases authorized as of Se
Slide 16: Cash Flow
Cash Flow $200 $150 In Millions $100 $50 $0 -$50 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Operating Cash Flow Capital Expenditures Free Cash Flow Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Operating Cash Flow $ 176.1 $ 31.9 $ 102.8 $ 164.9 159.1 Capital Expenditures $ (31.5) $ (30.4) $ (35.7) $ (39.7) $ (54.1) Fr
Slide 17: Vision 2025
Vision 2025 (v} Drive above-market profitable organic growth (vv) Build scale with synergistic acquisitions in CCM, CIT and CFT {qh ao E 2 § wy fe2 3 (v} Utilize COS consistently to drive efficiencies and operating leverage & =— ege iu vv} Continue to invest in and develop exceptional talent Deploy
Slide 18: 2018 Outlook
2018 Outlook • Total net sales growth from • Corporate Expense ~$65-70M continuing operations in mid-teens • Depreciation & Amortization ~$180-190M ‒ CCM: up mid-teens • Capital Expenditures ~$135-160M ‒ CIT: up mid-single digit • Free cash flow conversion +100% ‒ CFT: up mid-single digit • Net Inte
Slide 19: Appendix
vision | mp ~/ dB k-yE E 2025 THE NEXT 100 YEARS Appendix ed _ARLISLE po THE NEXT 100 YEARS
Slide 20: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Leverage Ratios under Credit Agreement Net Debt to Capital Ratio LTM ($ in Millions except for Ratios) Capital ($ in Millions except for Ratios) LTM 12/31/2017 Total Debt $1,600 Net Debt 1,220 Net income $366 Less: Cash 380 Total shareholders' equity 2,528