Slide 1: Earnings Conference Call Third Quarter 2021
Earnings Conference Call Third Quarter 2021 October 19, 2021 – 9:00am 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 the novel coronavirus (COVID-19) on the global economy and on our customers, supplie
Slide 3: Q3 2021 Highlights
3 YTD Free Cash Flow(1) +80 bps Adj. Segment EBIT Margin(1) to 19.0% +$104M Y-o-Y Q3 2021 Highlights (1) Non-GAAP measures (definitions and reconciliations in appendix) (2) See performance measures definitions in appendix (3) Refer to definition of total segment earnings (EBIT) margin in appendix 1.
Slide 4: Summary Corporate Q3 Results
4 Summary Corporate Q3 Results Q3 2021 Highlights and Comments Revenue change (Y-o-Y) All-in Organic(1) +15% +13% Y-o-Y growth in all segments Q3 FX impact: +1%; acquisitions +1% Bookings change (Y-o-Y) All-in(2) Organic(2) +27% +25% Q3 book-to-bill(2): 1.14; bookings up Y-o-Y in all five segm
Slide 5: Segment Revenue and Adjusted EBIT Performance
5 Segment Revenue ($M) / Organic Change % Adj. EBIT % / bps ∆ Y-o-Y Organic YTD Revenue Δ ‘21 vs. ‘19 Performance Commentary DEP $448 +14% 14.2% -320 bps +1% Top line strength across most end markets; soft shipments in European defense components; significant input shortages impacting shipment tim
Slide 6: Q3 2021 Revenue and Bookings Bridges
6 Q3 2020 Revenue & Bookings Q3 2021 Revenue Change in Organic Revenue(1): +$231M, or +13.2% DFS DII DPPS DRFE FX ACQ./ DISP. (2) Q3 2021 ACQ./ DISP. (3) DPPS Q3 2021Q3 2020 DEP DFS DII DRFE FX Note: $ in millions. Numbers may not add due to rounding Q3 2021 Bookings(4) Change in Organic Bookings(4)
Slide 7: Q3 2021 Adjusted Segment EBIT and Adjusted Net Earnings
7 Q3 2021 Adjusted Segment EBIT and Adjusted Net Earnings ADJ. ON SALE OF CHINO SEGMENT EBIT ADJ. EARNINGS GAAP EARNINGS RIGHT SIZING ACQ. AMORT. ADJ. EARNINGS CORP. EXPENSE INT./TAX EXPENSE ACQ. AMORT. RIGHT SIZING GAAP EARNINGS Change in Adjusted Net Earnings (3) +$57M 200 5 0 27 232 64 1 -9 288 -
Slide 8: Year-to-Date Free Cash Flow
8 Year-to-Date Free Cash Flow 12.3% (1) Includes stock-based compensation and changes in other current and non-current assets and liabilities (2) Non-GAAP measures (reconciliations and definitions in appendix) Note: Numbers may not add due to rounding $M YTD ’21 YTD ’20 ∆ Net earnings 761 501 +260 A
Slide 9: Portfolio Activity Update
9 Portfolio Activity Update 2018-21 DealsInorganic Priorities as Communicated in September 2019 ~$150 ~$320 ~$210 ~$140 ~$15 (1) Total purchase consideration over 2018-2021 (on a cash free and debt free basis, including contingent consideration) (2) Sale price on a cash free and debt free basis subj
Slide 10: FY2021 Guidance Update
10 FY2021 Guidance Update Euro/Dollar assumption: 1.20 (1) Non-GAAP measure (definition and/or reconciliation in appendix) Post-Q2 Guide Revised Guide All-in Revenue Growth 15-17% No change EPS GAAP(3) Adj.(1) $6.45 - $6.55 $7.30 - $7.40 $6.64 - $6.69 $7.45 - $7.50 Tax rate 21% - 22% No change FCF(1
Slide 11: Appendix
11 Appendix
Slide 12: Organic Revenue and Bookings Bridges
12 Organic Revenue and Bookings Bridges Note: Numbers may not add due to rounding Revenue Bookings 14.2% 30.3% 3.0% 15.8% 7.4% 7.5% 24.6% 50.1% 16.0% 19.7% 13.2% 24.8% 1.1% 1.1% 0.0% 0.0% 1.1% 1.3% Total 15.4% 27.2% Q3 2021 Q3 2021 YTD 15.7% 15.6% 8.7% 18.9% 15.5% 18.9% 4.6% 19.4% 0.1% 10.9% 13.2% 1
Slide 13: Organic Revenue Growth and YTD 2021 vs. YTD 2019 Comparison
13 Organic Revenue Growth and YTD 2021 vs. YTD 2019 Comparison Note: Numbers may not add due to rounding Segment Growth Factors YTD Q3 Organic Growth YTD Q3 '21 vs. Q3 '19 2020 2021 Organic Growth -10.9% 13.3% 1.0% -8.5% 9.7% 0.3% -8.6% 10.0% 0.5% -3.6% 25.4% 20.8% -7.6% 25.1% 15.6% -8.0% 16.8% 7.4%
Slide 14: Q3 2020 to Q3 2021 Revenue and Bookings Bridges by Segment
14 Q3 2020 to Q3 2021 Revenue and Bookings Bridges by Segment Note: Numbers may not add due to rounding DEP DFS DII DPPS DRFE Total 387 381 266 348 368 1,748 55 11 20 85 59 231 5 5 4 4 2 21 1 14 3 1 - 18 448 411 293 438 429 2,018 DEP DFS DII DPPS DRFE Total 381 384 266 324 450 1,804 115 61 20 162 89
Slide 15: Reconciliation of Q3 2021 Net Earnings to Adj. EBIT and Adj. EBITDA
15 Reconciliation of Q3 2021 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment (1) Adjusted depreciation and amortization expense excludes depreciation and amortization included within rightsizing and other costs Note: Numbers may not add
Slide 16: Reconciliation of Q3 2020 Net Earnings to Adj. EBIT and Adj. EBITDA
16 Reconciliation of Q3 2020 Net Earnings to Adj. EBIT and Adj. EBITDA and Calculation of Adj. EBIT Margin and Adj. EBITDA Margin by Segment DEP DFS DII DPPS DRFE Total 387 381 266 348 368 1,748 - - - - - 200 - - - - - 36 - - - - - 27 - - - - - 51 65 67 52 90 40 313 16.8% 17.5% 19.5% 25.8% 10.9% 17.
Slide 17: Reconciliation of Adjusted Net Earnings and Adjusted Diluted EPS
17 Reconciliation of Adjusted Net Earnings to Net Earnings and Adjusted Diluted EPS to Diluted EPS Note: Numbers may not add due to rounding ($ in millions, except per share data) Q3 2021 Q3 2020 FY 2020 FY 2019 FY 2018 Net earnings from continuing operations ($) 264 200 683 678 591 Acquisition-rela
Slide 18: Reconciliation of FY 2020, FY 2019, FY 2018 Earnings to Adj. Segment EBIT
18 Reconciliation of FY 2020, FY 2019, and FY 2018 Earnings from Continuing Operations to Adj. Segment EBIT and Calculation of Adj. EBIT Margin FY 2020 FY 2019 FY 2018 6,684 7,136 6,992 683 678 591 127 124 130 108 121 122 158 165 134 Loss on extinguishment of debt - 24 - 1,077 1,112 977 16.1% 15.6%
Slide 19: Reconciliation of Free Cash Flow, EPS to Adjusted EPS, and Adjusted EBIT Conversion Margin
19 Reconciliation of Free Cash Flow, EPS to Adjusted EPS, and Adjusted EBIT Conversion Margin Range 2021 Guidance for Earnings per Share (GAAP) $6.64 $6.69 Acquisition-related amortization, net $0.74 Rightsizing and other costs, net $0.07 2021 Guidance for Adjusted Earnings per Share (Non-GAAP) $7.4
Slide 20: Non-GAAP Definitions
20 Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Net Earnings: is defined as net earnings adjusted for the effect of acquisition-related amortization, rightsizing and other costs/benefits, gain/loss on dispositions, loss on extinguishment of debt, loss on assets held for sale, and
Slide 21: Performance Measure Definitions
21 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. Organic Bookings represent total orders receiv
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