Slide 1: Earnings Conference Call Second Quarter 2022
Earnings Conference Call Second Quarter 2022 July 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 coronavirus (COVID-19) on the global economy and on our customers, suppliers, employ
Slide 3: Q2 2022 Performance Highlights
3 Free Cash Flow(1) Sequential improvement of 100 bps vs. Q1 ‘22 41.6% of adjusted net earnings(1) All-in and organic(1) revenue growth: 8% - 10% Adjusted diluted EPS(1): $8.45 - $8.65 Organic Revenue(1) Book-to-bill(2): 0.98 (>1 excluding $74M terminated contract(4))Organic growth in three of five
Slide 4: Summary Corporate Q2 Results
4 Summary Corporate Q2 Results Q2 2022 Highlights and Comments Revenue change (Y-o-Y) All-in Organic(1) 6% 7% Y-o-Y organic growth in three of five segments Q2 FX impact: -4%, higher than expected for Q2; acquisitions (net of divestitures) +2% Bookings change (Y-o-Y) All-in(2) Organic(2) -11% -1
Slide 5: Segment Revenue and Earnings Margin
5 Segment Revenue ($M) / Y-o-Y Organic Change %(1) Segment Earnings Margin % ∆ Y-o-Y bps / ∆ vs Q1’22 bps Performance Commentary DEP $514 +19% 15.9% -20 bps +130 bps Strength in waste handling, vehicle services, and industrial winches and automation. Aerospace & defense down on program timing and
Slide 6: Revenue & Bookings
6 Revenue & Bookings (1) Non-GAAP measure (definition and/or reconciliation in appendix) (2) Acquisitions: $84M, dispositions: $34M Q2 2022 % of Revenue 7% 21% 3% 58% 11%ASIA REST OF WORLD EUROPE OTHER AMER. US -14% 0% 12% -18% 12% Q2 ’22 Organic Rev Growth(1) (3) Acquisitions: $76M, dispositions: $
Slide 7: Q2 2022 Segment Earnings and Adjusted Net Earnings
7 -80 bps SEGMENT EARNINGS ADJ. EBITDANON-ACQ. D&A (1) DEP DII DPPSDCEF DCST ADJ. EBITDA NON-ACQ. D&A (1) SEGMENT EARNINGS (1) Relates to PP&E and intangibles, and excludes amounts related to purchase accounting expenses and restructuring and other costs (2) Non-GAAP measures (definitions and/or rec
Slide 8: Year-to-Date Free Cash Flow
8 12.3% (1) Includes stock-based compensation, tax payment related to the sale of Unified Brands, non-cash foreign currency translation losses reclassified to earnings, and changes in other current and non-current assets and liabilities (2) Non-GAAP measures (definitions and/or reconciliations in ap
Slide 9: Segment Outlook and 2022 Organic Growth
9 Segment Demand trends ’22 Organic Growth(2) Outlook Price – Cost Inputs availability Comments DEP DD Strong backlog and positive demand trends across all businesses Expect sequential margin improvement on improving price / materials spread and easing supply chain constraints DCEF LSD- MSD Po
Slide 10: Elevated Backlog Provides Visibility and Confidence in Projected Growth
10 7.0 7.1 6.7 7.9 4.2 7.3 7.3 6.9 9.4 4.4 2018 2019 2020 2021 YTD ’22 (1) See performance measures definitions in appendix (2) Calculated by applying the midpoint of 2022 full year 8-10% all-in revenue growth guide to the 2021 full year revenue Unprecedented Book-to-Bill(1) in ’21 Revenue Bookings
Slide 11: Margin Progression Trending Positive
11 Margin Progression Trending Positive 19.2% H1 ’19 H2 ’19 17.9% H2 ’20H1 ’20 17.8% 19.7% H1 ’21 H2 ’21 21.2% 20.1% H1 ’22 H2 ’22 20.1% 2019 2020 2021 “Normal” seasonality; Strong conversion on volume growth and productivity initiatives Proven playbook to protect margin in challenging / lower volum
Slide 12: Appendix
12 Appendix
Slide 13: Organic Revenue and Bookings Bridges
13 Note: Numbers may not add due to rounding Organic Revenue and Bookings Bridges
Slide 14: Q2 2021 to Q2 2022 Revenue and Bookings Bridges by Segment
14 Note: Numbers may not add due to rounding Q2 2021 to Q2 2022 Revenue and Bookings Bridges by Segment
Slide 15: Reconciliation of Net Earnings to Segment Earnings and Adjusted Segment EBITDA
15 Note: Numbers may not add due to rounding Reconciliation of Net Earnings to Segment Earnings and Adjusted Segment EBITDA (1) Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and restructurin
Slide 16: Reconciliation of Quarterly 2021 and 2020 Net Earnings to Segment Earnings
16 Note: Numbers may not add due to rounding Reconciliation of Quarterly 2021 and 2020 Net Earnings to Segment Earnings and Calculation of Segment Earnings Margin ($ in millions) Q1 Q2 H1 Q3 Q4 H2 FY Revenue 1,868 2,032 3,900 2,018 1,989 4,008 7,907 Net earnings 233 265 497 264 363 627 1,124 Add bac
Slide 17: Reconciliation of Quarterly 2019 and Full Year 2018 Net Earnings to Segment Earnings
17 Note: Numbers may not add due to rounding Reconciliation of Quarterly 2019 and Full Year 2018 Net Earnings to Segment Earnings and Calculation of Segment Earnings Margin ($ in millions) Q1 Q2 H1 Q3 Q4 H2 FY Revenue 1,725 1,811 3,535 1,825 1,776 3,601 7,136 Net earnings 106 198 304 206 168 374 678
Slide 18: Reconciliation of Net Earnings to Adjusted Net Earnings and Adjusted Diluted EPS
18 Note: Numbers may not add due to rounding Reconciliation of Net Earnings to Adjusted Net Earnings and Diluted EPS to Adjusted Diluted EPS
Slide 19: Reconciliation of Free Cash Flow and EPS to Adjusted EPS
19 Note: Numbers may not add due to rounding Reconciliation of Free Cash Flow and EPS to Adjusted EPS
Slide 20: Non-GAAP Definitions
20 Note: Numbers may not add due to rounding 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/benefits, Tax Cuts and Jobs Act, and gain/loss on dispositions.
Slide 21: Performance Measure Definitions
21 Note: Numbers may not add due to rounding 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. Orga
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