Slide 1: First Quarter Earnings Call
FIRST QUARTER EARNINGS CALL April 25, 2024
Slide 2: Safe Harbor
SAFE HARBOR Today’s presentation includes forward-looking statements that reflect management’s current expectations about the Company’s future business and financial performance. These statements are subject to certain risks and uncertainties that could cause actual results to differ from anticipate
Slide 3: Financial Results
FINANCIAL RESULTS Statement of Earnings First Quarter $ in millions except per share amounts 2024 2023 Change (1) Net earnings and diluted net earnings per share for 2024 and 2023 Net Sales $ 492.2 $ 529.6 (7)% have been adjusted to provide a more consistent basis of Gross Profit 266.2 285.1 (7)% co
Slide 4: Net Sales
NET SALES Components of Net Sales Change 2024 First Quarter Segment Region Contractor Industrial Process Americas EMEA Asia Pacific Consolidated Volume and Price (6)% (5)% (10)% (8)% 0% (14)% (7)% Acquisitions 0% 0% 0% 0% 0% 0% 0% Currency 0% 0% 0% 0% 2% (2)% 0% Total (6)% (5)% (10)% (8)% 2% (16)% (
Slide 5: Operating Earnings
OPERATING EARNINGS First Quarter 2023 Operating Earnings, as reported ($M and % of sales) $ 157 30 % Translation effect (1) 0 Unfavorable volume (19) 0 Volume effect on expense leverage (4) (3) 2024 Operating Earnings, as reported ($M and % of sales) $ 133 27 % Operating Earnings Quarter Over Quarte
Slide 6: First Quarter 2024
FIRST QUARTER 2024 • Down 7 percent from 2023. Currency translation rates had no significant Net Sales impact. • Margin rate up 0.3 percentage points compared to first quarter 2023. Gross Margin > Realized pricing partially offset by unfavorable product and channel mix • Margin dollars down on lower
Slide 7: 2024 Outlook
2024 OUTLOOK Constant currency basis and excluding acquisitions completed in the prior 12 months Americas EMEA Asia Pacific Worldwide Current Q1 2024 (8%) Q1 2024 0% Q1 2024 (14%) Net Sales Change Q1 2024 (7%) Environment Contractor Net Sales Change Q1 2024 (6%) Segment Q1 2024 (10%) Q1 2024 9% Q1 2
Slide 8: Cash Flow and Liquidity
CASH FLOW AND LIQUIDITY Net Earnings, as Adjusted, and Cash from Operating Activities $ in millions $209 $191 $160 $137 $124 $127 $129 $131 $137 $117 $104 $115 $113 $119 $100 $91 $105 $31 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Net Earnings, as Adjusted Cash from Operating Activites Ot
Slide 9: Other Discussion Items
OTHER DISCUSSION ITEMS • Capital expenditure expectations of approximately $120 million in 2024, Cap Ex including approximately $70 million in facility expansion projects • Unallocated corporate expenses in 2024 are expected to be approximately Expenses $41- $44 million • No shares were repurchased
Slide 10: Contractor Segment Results
CONTRACTOR SEGMENT RESULTS Q1 2024 Contractor Segment $ in millions First Quarter Net Sales as % of Graco 2024 2023 Change Net Sales Americas $ 166 $ 184 (10)% 47% EMEA 46 42 10 Asia Pacific 18 20 (8) Total $ 230 $ 246 (6)% Operating Earnings $ 66 $ 74 (10)% % of sales 29 % 30 % Components of Net Sa
Slide 11: Contractor Segment Operating Margins
CONTRACTOR SEGMENT RESULTS Change in % of net sales First Quarter 2023 Operating Earnings 30 % Price and cost 1 Volume effect on expense leverage (2) 2024 Operating Earnings 29 % Contractor Segment Net Sales and Operating Margins Contractor Segment Operating Earnings QTD $400 M 35% $350 M ($6M) 30%
Slide 12: Industrial Segment Results
INDUSTRIAL SEGMENT RESULTS Q1 2024 Industrial Segment $ in millions First Quarter Net Sales as % of Graco 2024 2023 Change Net Sales Americas $ 62 $ 63 (3)% EMEA 47 48 (2) Asia Pacific 33 39 (15) Total $ 142 $ 150 (5)% 29% Operating Earnings $ 45 $ 53 (15)% % of sales 32 % 35 % Components of Net Sal
Slide 13: Industrial Segment Operating Margins
INDUSTRIAL SEGMENT RESULTS Change in % of net sales First Quarter 2023 Operating Earnings 35 % Volume, product and channel mix (1) Volume effect on expense leverage (2) 2024 Operating Earnings 32 % Industrial Segment Net Sales and Operating Margins Industrial Segment Operating Earnings QTD $250 M 40
Slide 14: Process Segment Results
PROCESS SEGMENT RESULTS Q1 2024 Process Segment $ in millions First Quarter Net Sales as % of Graco 2024 2023 Change Net Sales Americas $ 79 $ 85 (6)% 24% EMEA 18 18 (6) Asia Pacific 23 30 (23) Total $ 120 $ 133 (10)% Operating Earnings $ 35 $ 41 (14)% % of sales 29 % 30 % Components of Net Sales Ch
Slide 15: Process Segment Operating Margins
PROCESS SEGMENT RESULTS Change in % of net sales First Quarter 2023 Operating Earnings 30 % Price and cost 1 Volume effect on expense leverage (2) 2024 Operating Earnings 29 % Process Segment Net Sales and Operating Margins Process Segment Operating Earnings QTD $200 M 40% ($6M) 35% Operating Margin
Slide 16: Adjusted Financial Results
ADJUSTED FINANCIAL RESULTS Financial results have been adjusted for comparability. Excess tax benefit from stock option exercises has caused fluctuation in the Company’s financial results. Excluding the impact of this benefit presents a more consistent basis for comparison of financial results. A ca
Slide 17: Worldwide Leader in Fluid Handling
WORLDWIDE LEADER IN FLUID HANDLING MOVE • MEASURE • MIX • CONTROL • DISPENSE • SPRAY