Standex International Corporation · NYSE:SXI

Standex International — Q2 2023 Earnings Presentation

18 slides from Standex International's earnings presentation, Feb 3, 2023

  1. Slide 1: Second Quarter Fiscal 2023 Earnings Call Presentation

    Second Quarter Fiscal 2023 Earnings Call Presentation February 3, 2023

  2. Slide 2: Safe Harbor Statement

    SAFE HARBOR STATEMENT Statements contained in this presentation that are not based on historical facts are “forward-looking statements” within the meaning of the Private Secu- rities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology

  3. Slide 3: Key Q2 FY23 Messages

    KEY Q2 FY23 MESSAGES Q2 FY23 RESULTS • 5.5% YOY (fixed currency) organic growth; Three of five business segments with >10% organic growth &TRENDS • Seventh consecutive quarter of record adjusted operating margin; 20 bps higher than the previous record • Solid execution on price realization and produ

  4. Slide 4: Electronics

    ELECTRONICS YOY Comparison Q2 FY23 Summary % • Organic revenue decreased $0.2M, or 0.2%, $ in 000’s Q2 FY23 Q2 FY22 Change reflecting softness in the appliances end market in Europe and the China slowdown Revenue 72,556 76,626 (5.3%) • Continued positive trends in industrial applications, Operating

  5. Slide 5: Engraving

    ENGRAVING YOY Comparison Q2 FY23 Summary • Positive YOY organic revenue growth of 12% $ in 000’s Q2 FY23 Q2 FY22 % Change mostly offset by 9.2% impact from currency • Operating income increased due to realization of Revenue 37,689 36,644 2.8% previously announced productivity actions in North Operat

  6. Slide 6: Scientific

    SCIENTIFIC YOY Comparison Q2 FY23 Summary $ in 000’s Q2 FY23 Q2 FY22 % Change • As expected, revenue decreased due to lower demand associated with COVID-19 vaccine Revenue 19,292 24,636 (21.7%) storage • Operating income decreased due to lower Operating Income 4,165 5,490 (24.1%) volume, partially o

  7. Slide 7: Engineering Technologies

    ENGINEERING TECHNOLOGIES YOY Comparison Q2 FY23 Summary • Revenue increased reflecting strong growth in $ in 000’s Q2 FY23 Q2 FY22 % Change space and aviation end market demand Revenue 24,193 18,095 33.7% • Operating income increased due to higher volume and the impact of productivity and Operating

  8. Slide 8: Specialty Solutions

    SPECIALTY SOLUTIONS YOY Comparison Q2 FY23 Summary $ in 000’s Q2 FY23 Q2 FY22 % Change • Revenue increased due to healthy organic growth in Hydraulics and Display Merchandising businesses Revenue 34,059 29,708 14.6% • Operating income increase reflected price and Operating Income volume increases an

  9. Slide 9: Q2 FY23 Summary

    Q2 FY23 SUMMARY Standex International Corporation Second Quarter Ended December 31 (In millions) Q2/23 Q2/22 Y/Y ∆% Comments Net Sales $187.8 $185.7 1.1% Organic growth in ETG, Specialty, and Engraving Organic growth: 5.5% Acquisitions: 0.4% F/X: -4.8% Adjusted Operating Income 28.6 25.2 13.3% Inter

  10. Slide 10: Q2 FY23 Segment Snapshot

    Q2 FY23 SEGMENT SNAPSHOT Segment Breakdown (in millions) Q2/23 Q2/22 Y/Y ∆% Comments Net Sales by Segment Electronics $72.6 $76.6 -5.3% Organic growth: -0.3%; Acquisitions: 1.0%; F/X: -6.1% Engraving 37.7 36.6 2.8% Organic growth: 12.0%; F/X: -9.2% Scientific 19.3 24.6 -21.7% Lower demand for COVID

  11. Slide 11: Q2 FY23 Capitalization

    Q2 FY23 CAPITALIZATION FAVORABLE LIQUIDITY PROFILE ▪ Net debt to adj. EBITDA of 0.6x Standex International Corporation (In millions) 12/31/2022 9/30/2022 ▪ Net debt to total capital of 12.3% Debt including issuance costs $187.5 $198.9 ▪ ~$324M of available liquidity Cash 113.5 103.4 ▪ $4.3M repatria

  12. Slide 12: Accelerating Sales into Fast Growth Markets

    ACCELERATING SALES INTO FAST GROWTH MARKETS Renewable Energy Solar market to remain strong with long term growth supported by government investments Electric Vehicles 3X - 5X higher content in EV than ICE for the Electronics segment. Strong competitive position in safety isolation circuits. Soft Tri

  13. Slide 13: Standex Financial Framework

    STANDEX FINANCIAL FRAMEWORK UPDATED LONGER-TERM TARGETS (by FY28) Sales >$1B (High-single-digit organic growth) Adj. Operating Margin >19% FCF Conversion ~100% GAAP Net Income ROIC >15% EXPECT SALES TO EXCEED $1 BILLION WITHIN 5 YEARS • Prior longer-term targets (January 2021) were mid-single-digit

  14. Slide 14: Key Takeaways

    KEY TAKEAWAYS ▪ Record adjusted operating margin in Q2 FY23 driven by continued strong execution ▪ Organic growth of 5.5% ▪ Adjusted operating margin of 15.2% increased 20 bps over previous Q1 FY23 record ▪ Adjusted EPS growth of 20.0% ▪ Continued simplification of portfolio enables greater focus on

  15. Slide 15: Appendix

    APPENDIX 15

  16. Slide 16: Q2 FY23 Revenue Drivers

    Q2 FY23 REVENUE DRIVERS Q2 FY23 Electronics Engraving Scientific Engineering Specialty Total YOY Change % Technologies Solutions Organic -0.2% 12.0% (21.7%) 36.2% 15.9% 5.5% Divestiture 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Acquisitions 1.0% 0.0% 0.0% 0.0% 0.0% 0.4% Currency (6.1%) (9.2%) 0.0% (2.5%) (1.3%)

  17. Slide 17: Q2 FY23 GAAP to Non-GAAP EBIT & EBITDA Bridge

    Q2 FY23 GAAP TO NON-GAAP EBIT & EBITDA BRIDGE Three Months Ended December 31, % (In thousands, except percentages) 2022 2021 Change Adjusted income from operations and adjusted net income from continuing operations: Net Sales $ 187,789 $ 185,709 1.1% Income from operations, as reported $ 27,806 $ 21

  18. Slide 18: Q2 FY23 GAAP to Non-GAAP Income Bridge

    Q2 FY23 GAAP TO NON-GAAP INCOME BRIDGE Q2 FY23 Q2 FY22 % Change Pre-tax Net Pre-tax Net Pre-tax Net Income Tax Income EPS Income Tax Income EPS Income Income EPS Reported - GAAP $ 26.3 $ (6.2) $ 20.1 $ 1.69 $ 20.0 $ (4.9) $ 15.0 $ 1.24 31.8% 33.6% 36.3% Add: Restructuring charges 0.5 (0.1) 0.4 0.03

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