Regal Rexnord Corporation · NYSE:RRX
Regal Rexnord — Baird 2022 Global Industrial Conference
16 slides from Regal Rexnord's conference presentation, Nov 9, 2022
Slide 1: Baird 2022 Global Industrial Conference
BAIRD 2022 GLOBAL INDUSTRIAL CONFERENCE November 9th, 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which reflect Regal Rexnord’s current estimates, expectations and projections about Regal Rexnord’s future results, performance, pro
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES We prepare financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We also periodically disclose certain financial measures in our quarterly earnings releases, on investor conference calls, and in investor
Slide 4: Today's Presenters
TODAY’S PRESENTERS LOUIS PINKHAM ROB REHARD Chief Executive Officer Chief Financial Officer 44
Slide 5: Regal Rexnord Snapshot
REGAL REXNORD SNAPSHOT ~$5.2B ~33% ~21% ~$1.4B ~29,000 Net Sales Gross Margin Adj. EBITDA Margin Backlog Employees 2022E1 2022E1 2022E1 Sep. 30, 2022 2022E General Industrial 5 Power Transmission 12 Consumer 20 Non-Res Construction 15 Motors & Air Moving 2 2 Food & Beverage Niche Engineered 3 3 Comm
Slide 6: Transforming Into A Higher-Performing Enterprise
TRANSFORMING INTO A HIGHER-PERFORMING ENTERPRISE Adjusted Gross Margins 1,2 From 3 Segment P&Ls To 18 BUs ~40.0% Decentralized And >60 Plant-Level & Product P&Ls ~37% ~33% Embedded In The Fabric 30.3% 80/20 Of Everything We Do 28.7% 27.5% >50% Of RRX’s Business Unit New Leadership Leaders New Since
Slide 7: Altra Snapshot
ALTRA SNAPSHOT ~$1.9B ~35% ~19.5% Net Sales1 Adj. Gross Margin2 Adj. EBITDA Margin1 Power Transmission Technologies (PTT) Automation & Specialty (A&S) Renewables Tidal turbine Medical Factory Automation Devices Gear drives and gear Precision motors, drives motors & automation controls Automated Guid
Slide 8: Compelling Synergy Potential
COMPELLING SYNERGY POTENTIAL Significant Cost Synergies ($M)1 Material Cross-Marketing Opportunities ~$160 Opportunity to create new sub-systems ~$140 including the industrial powertrain ~$100 Geographic expansion, access to new markets and customers ~$40 Shared distribution channels Deployment of c
Slide 9: PTT Enhances Industrial Powertrain Offering
PTT ENHANCES INDUSTRIAL POWERTRAIN OFFERING Motors Digital Solutions Gear Coupling Belts Belted Drives Disc Coupling Mounted Bearings Gear Motor Shaft Lock Mounted Bearings Clutch Gear Drives Brakes Addition Of Altra’s Complementary Power Transmission Portfolio Expected To Create A More Compelling O
Slide 10: Automation & Specialty Opens New Growth Vectors
AUTOMATION & SPECIALTY OPENS NEW GROWTH VECTORS Medical Automated Factory Medical Surgical Infusion Devices Guided Vehicles Automation Patient Tables Devices Systems AKM Servo Motor Controller & Servo Precision Ball Electrak Linear Arthroscopic High Power Density used in Robotic Drive used in Screw
Slide 11: Strategically Enhanced Automation Presence
STRATEGICALLY ENHANCED AUTOMATION PRESENCE Critical Mass In Automation Applications Opens Many New Growth Vectors 11
Slide 12: Expected Regal Rexnord in 2025
EXPECTED REGAL REXNORD IN 2025 Adjusted Adjusted Annual Free Net Debt/ Revenue Adjusted EPS Gross Margin EBITDA Margin1 Cash Flow Adj. EBITDA1 Shared At Investor >$6B ~37% ~25% ~$15 ~$1B 2.0-2.5x Day 2022 Current 2025E ~$8.3B ~40% >25% ~$18 ~$1.1B 2.0-2.5x Expected (~$1.4B in ‘26) Updated 2025 Targe
Slide 13: Appendix
APPENDIX 13
Slide 14: Altra Snapshot
ALTRA SNAPSHOT ~$1.9B ~19.5% ~$0.95B ~9,600 49 Net Sales Adj. EBITDA Margin Backlog Employees Manufacturing Sites LTM Sep 30, 20221 LTM Sep 30, 20221 June 30, 2022 Dec 31, 2021 Dec 31, 2021 Factory Automation and Specialty Machinery 9 15 Turf and Garden, Ag, Construction 15 2 Material Handling 7 Med
Slide 15: A Stronger Portfolio For The Future
A STRONGER PORTFOLIO FOR THE FUTURE Segments End-Markets Geography Altra Revenue Mix Industrial Systems Res NC Regal Rexnord + 9% 3% Other (including General Industries APAC and RoW Automation & Medical, 19% 16% Specialty Renewables, 13% Motion Control Data Center) Solutions 25% 48% Consumer Europe
Slide 16: Adjusted Gross Margin
ADJUSTED GROSS MARGIN TOTAL REGAL REXNORD ADJUSTED GROSS MARGIN Unaudited (Dollars in Millions) Year Ended Jan 1, Jan 2, Dec 28, 2022 2021 2019 Net Sales $3,810.3 $2,907.0 $3,238.0 Net Sales from Businesses Divested/to be Exited — — (52.8) Adjusted Net Sales $3,810.3 $2,907.0 $3,185.2 Gross Profit a
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