Slide 1: 1st Quarter 2021 Earnings Conference Call
////////////////// 1st Quarter 2021 Earnings Conference Call April 22, 2021
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 dif
Slide 3: Conference Call Logistics
Conference Call Logistics ////////////////// The release, accompanying slides and replay webcast are available online at www.graco.com/ir Telephone replay will be available after 2 p.m. ET, April 22, 2021. The replay by telephone will be available through 2 p.m. ET, April 29, 2021. ▶ 855-859-2056 –
Slide 4: Financial Results
Financial Results ////////////////// Statement of Earnings First Quarter $ in millions except per share amounts 2021 2020 Change Net Sales $ 454.1 $ 373.6 22 % Gross Profit 247.3 198.6 25 % % of Net Sales 54.5% 53.2% 1.3 pts Operating Earnings 128.3 89.8 43 % % of Net Sales 28% 24% 4 pts Net Earning
Slide 5: Financial Results Adjusted for Comparability
Financial Results 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 calculation of the no
Slide 6: Net Sales
Net Sales ////////////////// Components of Net Sales Changes First Quarter March 2021 Segment Region Industrial Process Contractor Americas EMEA Asia Pacific Consolidated Volume and Price 12 % 7% 35 % 17 % 18 % 25 % 19 % Acquisitions and Divestitures 0% (3)% 0% 1% (1)% (3)% (1)% Currency 4% 2% 3% 0%
Slide 7: Operating Earnings
Operating Earnings ////////////////// First Quarter 2020 Operating earnings ($M and % of net sales) $ 90 24 % Translation effect 6 1 Volume and product and channel mix 43 1 Increase in sales and earnings-based costs (9) (2) Volume effect on expense leverage (2) 4 2021 Operating earnings ($M and % of
Slide 8: First Quarter 2021
First Quarter 2021 ////////////////// ► Up 22 percent from 2020, up 18 percent at consistent translation Net Sales rates ► Rate up 1.3 percentage points from 2020 Gross Margin Favorable effects of changes in currency translation rates, realized pricing and higher production volume were partially o
Slide 9: Outlook
Outlook ////////////////// 2021 Organic Net Sales by Segment - Compared to 2020 January February March Industrial Segment 9% 7% 19% Process Segment (6%) 1% 10% Contractor Segment 64% 21% 31% 21% 10% 22% ▶ Booking and billing improvement continued in the first quarter of 2021 ▶ All three segments had
Slide 10: Cash Flow and Liquidity
Cash Flow and Liquidity ////////////////// Net Earnings, as Adjusted, and Cash from Operating Activities $ in millions $136 $131 $113 $119 $120 $102 $106 $102 $102 $86 $82 $89 $80 $77 $65 $62 $51 $54 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Net Earnings, as Adjusted Cash from Operating
Slide 11: Other Discussion Items
Other Discussion Items ////////////////// Cap Ex Capital expenditure expectations of approximately $140 million in 2021, including approximately $90 million in facility expansion Expenses Unallocated corporate expenses in 2021 are expected to be approximately $30 million No share repurchases were ma
Slide 12: Industrial Segment Results
Industrial Segment Results ////////////////// 2021 Industrial Segment Q1 Net Sales as % of Graco $ in millions First Quarter 2021 2020 Change Net Sales Americas $ 80 $ 75 8% EMEA 57 46 23 Asia Pacific 48 38 26 41% Total $ 185 $ 159 16% Operating Earnings $ 65 $ 50 30% % of sales 35 % 32 % Components
Slide 13: Operating Margins
Industrial Segment Results ////////////////// Change in % of net sales First Quarter 2020 Operating Earnings 32 % Volume and product and channel mix 2 Increase in sales and earnings-based costs (1) Volume effect on expense leverage 2 2021 Operating Earnings 35 % Industrial Segment Net Sales and Oper
Slide 14: Process Segment Results
Process Segment Results ////////////////// 2021 Process Segment Q1 Net Sales as % of Graco $ in millions First Quarter 2021 2020 Change Net Sales 20% Americas $ 57 $ 55 3% EMEA 14 16 (6) Asia Pacific 20 15 30 Total $ 91 $ 86 6% Operating Earnings $ 22 $ 18 20 % % of sales 24 % 21 % Components of Net
Slide 15: Operating Margins
Process Segment Results ////////////////// Change in % of net sales First Quarter 2020 Operating Earnings 21 % Currency Translation 1 Volume, product and channel mix 1 Effect of acquired and divested business operations 1 Increase in sales and earnings-based costs (2) Volume effect on expense levera
Slide 16: Contractor Segment Results
Contractor Segment Results ////////////////// 2021 Contractor Segment Q1 Net Sales as % of Graco $ in millions First Quarter 2021 2020 Change Net Sales Americas $ 128 $ 95 34% 39% EMEA 39 26 50 Asia Pacific 11 8 46 Total $ 178 $ 129 38% Operating Earnings $ 48 $ 29 68% % of sales 27 % 22 % Component
Slide 17: Operating Margins
Contractor Segment Results ////////////////// Change in % of net sales First Quarter 2020 Operating Earnings 22 % Currency translation 1 Increase in sales and earnings-based costs (2) Volume effect on expense leverage 6 2021 Operating Earnings 27 % Contractor Segment Net Sales and Operating Margins
Slide 18: Worldwide Leaders in Fluid Handling
MOVE | MEASURE | MIX | CONTROL | DISPENSE | SPRAY WORLDWIDE LEADERS IN FLUID HANDLING www.graco.com