Slide 1: Regal Beloit Corporation Third Quarter 2012 Earnings Conference Call
Regal Beloit Corporation Third Quarter 2012 Earnings Conference Call ozteber29, 2012 cine aR REGAL
Slide 2: Safe Harbor Statement
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Slide 3: Non-GAAP Financial Measures
A recar Non-GAAP Financial Measures We prepare financial statements in accordance with accounting principles generally accepted in the United States (GAAP). We also disclose adjusted diluted eamings per share (EPS), adusted gross profit, adjusted gross profit as a percentage of net sales, adjusted i
Slide 4: Agenda
A recar Agenda Opening Comments Financial Update Operations Update Summary aga Closing Comments Mark Gliebe Chuck Hinrichs Jon Schlemmer Mark Gliebe All Mark Gliebe
Slide 5: Opening Comments
Opening Comments = Record Third Quarter Sales & Eamings — HVAC Showed Slight Growth as Expected —Realized Favorable Tax Incentives * Third Quarter Highlights —Free Cash Flow of 102% of Net Income —Continued Progress on Synergy Programs Opened Two China Facilities —Simplification Continuing = Fourth
Slide 6: 3rd Quarter 2012 Financial Results
3rd Quarter 2012 Financial Results = Third Quarter Results In Line with Expectations = Sales Increased 5.8% —Excl Acquired Businesses, Sales Declined 9.7% —Growth in North American HVAC and Unico —Sluggish North American Industrial Markets —Continued Intemational Headwinds —Curency Exchange Rates Re
Slide 7: 3rd Quarter 2012 Financial Results
3" Quarter 2012 Financial Results ADJUSTED DILUTED EARNINGS PER SHARE Three Months Ended Sep. 23, od. 1. 2012 2011 GAAP Diluted Eamings Per Share a ae EPC Acquisition Costs and Purchase Accourting Costs 7 0.28 Restructuring Costs Gain on Divestiture Prior Year Tax Benett ‘Adjusted Diluted E amings P
Slide 8: 3rd Quarter 2012 Financial Highlights
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Slide 9: 3rd Quarter 2012 Financial Highlights (Adjusted)
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Slide 10: 3rd Quarter 2012 Financial Performance
A recar 3" Quarter 2012 Financial Performance Capital Expenditures Income Tax Rate * $21 Million + 24.5% ETR * $5 Million Grants Received * High Technology Tax Incentive * $85 Million Est. for FY 2012 + 26.0% Est. ETR for4@ 2012 Free Cash Flow Balance Sheet 9/29/2012 + $55 Million FCF* + Total Debt
Slide 11: 4th Quarter 2012 Guidance
4 Quarter 2012 Guidance « GAAP EPS Guidance of $0.58 to $0.66 « Adjusted EPS Guidance of $0.67 to $0.75, After Adding Back $0.09 for Estimated Restructuring Costs — Seasonally Lower Sales in 4" Quarter — Modest Sales Growth Expected for HVAC — Weaker Demand in North America and Intemational Business
Slide 12: Quarter 2012 Operations Update
3 Quarter 2012 Operations Update + Slowing Market Conditions During Latter Part of Quarter = NA. Commercial and Industrial Motors Down 6.4% = NA Mechanical Down 0.9% = Sales Outside US. Down 9.4%, Representing 31.4% of Total Sales = Unico Up 32% Driven by Oil and Gas = NA Residential HVAC Up 0.4% pa
Slide 13: Synergies and Simplification
Synergies and Simplification « Juarez Restructuring Program — Closing Four Manufacturing Facilities ~ Excellent Progress - On Track to Complete by Mid 2013 « NA. Warehouse Restructuring Program ~ Exiting Three U.S. Warehouses - One Complete — Program to be Completed by Year End « Simplification Init
Slide 14: China Grand Opening Celebrations
China Grand Opening Celebrations Hermetic Motors - Taicang Generators - Shanghai Visual Management
Slide 15: Energy Efficient Products
Energy Efficient Products Total Sales e Efficient __ Energy Efficien Products pas
Slide 16: HERA-MAX Gear Motor
HERA-MAX Gear Motor = Drop-in Replacement Offering upto 35% Efficiency Improvement + Interchangeable Features Help Reduce Customers’ Inventory Levels by 75% + More Efficient, More Reliable, More Compact, Lighter Weight
Slide 17: Large Frame IEC Motors
Large Frame IEC Motors = Collaborative Effort Between North America and China Teams + Upto 1,250 Horsepower and 95% Efficient + Wide Range of Applications = Short Lead Times by Utilizing Existing Components IEC 450 Frame pw
Slide 18: Summary
A recar Summary = Record Third Quarter Sales and Eamings = Synergy and Simplification Benefits Beginning + Fourth Quarter —Normal Seasonality —Modest HVAC Growth — Difficult Sales Environment For Other North American and Intemational Businesses = Continued Strong Free Cash Flow * Acquisition Pipe Li
Slide 19: Questions and Answers
REGAL Questions and Answers
Slide 20: Closing Comments
Closing Comments = Record Third Quarter Sales and Earnings = Successful Integration and Driving Synergies = Successfully Transitioned Two Factories in China = Improved Quality and Delivery Performance Reflected by Improved Customer Survey Responses Thank You Pm
Slide 21: Appendix Non-GAAP Reconciliations
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Slide 22: Appendix Non-GAAP Reconciliations
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Slide 23: Appendix Non-GAAP Reconciliations
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