Slide 1: Earnings Conference Call Second Quarter 2024
July 25, 2024 – 8:30am CT Earnings Conference Call Second Quarter 2024
Slide 2: Forward-Looking Statements and Non-GAAP Measures
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 general economic conditions and conditions in the particular markets in which we operate, changes in
Slide 3: Q2 2024 Performance Highlights
Q2 2024 Performance Highlights Organic Revenue(1) +5% Y-o-Y Organic Bookings(2) +16% Y-o-Y All-in revenue grew 4% Quarterly Y-o-Y Organic Bookings Growth 61% 25% 22% 16% 27% -4% -12% -4% 2% 3% Total Segment +190 bps Y-o-Y to 22.1% Earnings Margin(1) -5% -8% -9% -18% Volume leverage, mix, and proacti
Slide 4: Summary Corporate Q2 Results
Summary Corporate Q2 Results Q2 2024 Highlights Revenue change All-in +4% ▪ Net acquisition / divestiture impact: -0.5%; FX -0.6% (Y-o-Y) Organic(1) +5% Bookings change All-in(2) +15% ▪ Book-to-bill(2): 1.00 (Y-o-Y) Organic(2) +16% Margin % 22% Segment Earnings(1) ▪ Segment Earnings(1) up $58M Y-o-Y
Slide 5: Segment Results
Segment Results Q2 2024 Revenue ($M) / Segment Earnings Segment Y-o-Y Organic(1) ∆ % % / bps ∆ Y-o-Y Performance Commentary ▪ Strong volumes in waste handling and aerospace & defense. Vehicle service up on European $515 20% recovery and improved production performance DEP +20% +430 bps ▪ Margin up o
Slide 6: Revenue & Bookings
Revenue & Bookings Q2 2024 Revenue Change in Organic Revenue(1): +$100M, or +5% Q2 ’24 Organic Rev Growth(1) ($M) 2,100 96 10 19 -14 -10 -13 -9 2,178 US 60% +11% Q2 2023 DEP DCEF DII DPPS DCST FX ACQ. / DISP. Q2 2024 Organic Q2 2024 Bookings(2) Change in Organic Bookings(2): +$305M, or +16% EUROPE 1
Slide 7: Q2 Year-to-Date 2024 Free Cash Flow
Q2 Year-to-Date 2024 Free Cash Flow $M YTD ’24 YTD ’23 ∆ Net earnings 914 471 443 Gain on disposition (529) -- (529) D&A 170 157 13 Change in working capital (139) (88) (51) Change in other(1) (46) (103) 57 Cash flow from operations 370 437 (67) Capex (85) (88) 3 Free cash flow(2) 285 348 (63) Plus:
Slide 8: Recent Transaction Announcements Continue Portfolio Evolution
Recent Transaction Announcements Continue Portfolio Evolution ▪ Divestiture of ESG and acquisitions of Marshall Excelsior and Demaco continue purposeful Acquisitions Divestiture portfolio evolution toward high-criticality components Transaction Information ─ Adds to secularly-advantaged clean energy
Slide 9: Pumps & Process Solutions
Building a $1B+ Platform of Critical Components for Industrial Gas, Cryogenic, and Clean Energy Applications Component parts for reciprocating ▪ Invested ~$2B in acquisitions since 2021 to Pumps & Process Solutions compressors build a global platform of critical components Bearing protection and sha
Slide 10: Marshall Excelsior is Highly Complementary to Clean Energy Platform
Marshall Excelsior is Highly Complementary to Clean Energy Platform Marshall Excelsior Company Overview Acquisition Rationale Leading provider of critical flow control components for ▪ Attractive growth profile (DD historical, MSD-HSD outlook) Attractive Business driven by regulatory tailwinds in di
Slide 11: Global Clean Energy Components Platform Poised for Growth
Global Clean Energy Components Platform Poised for Growth Recent Clean Energy acquisitions expand our geographic presence into Production Europe, add new attractive applications (agriculture, scientific research), Aerospace Industrial and greatly enhance our existing product offering and application
Slide 12: Strong Value-Creation Driven by Growth and Margin Improvement
Strong Value-Creation Driven by Growth and Margin Improvement; Equipped With the Portfolio, Strategy and Levers to Drive Future Value Revenue and Segment Margin(1) ($B) Through-Cycle Adj. EPS(1) Segment Margin Revenue $8.7-$8.8 +11% CAGR $8.5 $8.4 $8.45 $8.80 $9.05-$9.20 $7.9 $7.63 $7.0 $7.1 $5.93 $
Slide 13: Appendix
Appendix 13
Slide 14: Q2 2024 Total Segment Earnings and Adjusted Net Earnings
Q2 2024 Total Segment Earnings and Adjusted Net Earnings Change in Total Segment Earnings(2) +$58M 23.8% 21.9% +190 bps 20.2% 22.1% ($M) 423 37 461 27 4 14 9 3 518 37 481 TOTAL SEG. NON-ACQ. ADJ. DEP DCEF DII DPPS DCST ADJ. NON-ACQ. TOTAL SEG. EARNINGS D&A (1) EBITDA (2) EBITDA (2) D&A (1) EARNINGS
Slide 15: Organic Revenue Bridges
Organic Revenue Bridges Segment Growth Factors Organic Engineered Products Clean Energy & Fueling Imaging & Identification Pumps & Process Solutions Climate & Sustainability Technologies Total organic Acquisitions Dispositions Currency translation Total Q22024 FY 2023 FY.2022 = FY2021 = FY2020 = FY2
Slide 16: Organic Bookings Bridges
Organic Bookings Bridges Q1 Q2 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 2024 +2024 + ~—-2023 2023 2023-2023 2022 2022 2022 2022 2021 2021 2021 2021 Organic 3.0 % 16.1 % (3.9)% (12.2)% (3.5)% 2.0% (4.9)% (7.6)% (9.0) % (18.0)% 265 % 61.2 % 248 % 22.2 % Acquisitions 19% 21% 10% 07% 03% 04% 44% 32% 36% 28%
Slide 17: Q2 2023 to Q2 2024 Revenue and Bookings Bridges
Q2 2023 to Q2 2024 Revenue and Bookings Bridges Note: Numbers may not add due to rounding 17
Slide 18: Reconciliation of Net Earnings to Total Segment Earnings and Total Adjusted Segment EBITDA
Reconciliation of Net Earnings to Total Segment Earnings and Total Adjusted Segment EBITDA Note: Numbers may not add due to rounding 18
Slide 19: Reconciliation of Net Earnings to Total Segment Earnings
Reconciliation of Net Earnings to Total Segment Earnings Note: Numbers may not add due to rounding 19
Slide 20: Reconciliation of Net Earnings to Adjusted Net Earnings and Diluted EPS
Reconciliation of Net Earnings to Adjusted Net Earnings and Diluted EPS to Adjusted Diluted EPS Note: Numbers may not add due to rounding 20
Slide 21: Reconciliation of Free Cash Flow and EPS to Adjusted EPS
Reconciliation of Free Cash Flow and EPS to Adjusted EPS Note: Numbers may not add due to rounding 21
Slide 22: Non-GAAP Definitions
Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Net Earnings: is defined as net earnings adjusted for the effect of purchase accounting expenses, restructuring and other costs, disposition costs, loss on extinguishment of debt, Tax Cuts and Jobs Act, loss on assets held for sale and
Slide 23: Performance Measure Definitions
Performance Measure Definitions Definitions of Performance Measures: Bookings represent total orders received from customers in the current reporting period and exclude de-bookings related to orders received in prior periods, if any. This metric is an important measure of performance and an indicato
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