Modine Manufacturing Company · NYSE:MOD

Modine Manufacturing — Q3 FY2022 Earnings Presentation

20 slides from Modine Manufacturing's earnings presentation, Feb 3, 2022

1. Slide 1: Third Quarter Fiscal 2022

   THIRD QUARTER FISCAL 2022 February 3rd, 2022, 8:00 AM CDT

2. Slide 2: Presenters

   NEIL BRINKER President and Chief Executive Officer MICK LUCARELI Executive Vice President and Chief Financial Officer KATHY POWERS Vice President, Treasurer, Corporate Communications and IR

3. Slide 3: Forward-Looking Statements

   Forward-Looking Statements This presentation contains statements, including information about future financial performance and market conditions, accompanied by phrases such as “believes,” “estimates,” “expects,” “plans,” “anticipates,” “intends,” and other similar “forward-looking” statements, as d

4. Slide 4: Strategic Updates

   Strategic Updates  Applying 80/20 across all businesses to optimize margins and cash flows, including implementing responsible pricing activities, simplifying product line offerings and driving operational efficiencies  Managing vehicular business differently, focusing on technology and reprioriti

5. Slide 5: Business Highlights

   Business Highlights  Managing a very challenging business environment  Rapidly adjusting prices to offset significant cost increases  Addressing supply chain challenges through organizational changes and increased focus on critical suppliers  Labor shortages and COVID impacts appear to be improv

6. Slide 6: Third Quarter Financial Summary

   Third Quarter Financial Summary Net Sales Net Sales Change: $18M $502.2 million   $31M of positive pricing FX negatively impacted sales by $5M +4% YoY  Underlying pure volume decline of $8M Key Drivers of $7M Adjusted EBITDA Decrease Adjusted EBITDA* Volume Impact: $3 million $39.3 million  High

7. Slide 7: Building HVAC

   Building HVAC Q3 sales swing Net Sales $90.6 million 23% YoY Highlights  Significant data center volume improvement, with sales up 92% Adjusted  Heating and Ventilation & AC were higher than prior year by 9% and EBITDA* 8%, respectively  Adjusted EBITDA margin improving, up 260 bps sequentially f

8. Slide 8: Commercial & Industrial Solutions

   Commercial & Industrial Solutions Q3 sales swing Net Sales $148.6 million 19% YoY Highlights  Strong year-over-year earnings and margin improvements Adjusted  Sales increased due to higher sales in Commercial HVAC (30%), EBITDA* refrigeration (14%) and coatings (10%)  Approximately 50% of the $24

9. Slide 9: Heavy Duty Equipment

   Heavy Duty Equipment Q3 sales swing Net Sales $200.8 million 8% YoY Highlights  Sales increased in all key markets despite supply chain obstacles Adjusted and labor shortages EBITDA*  Excluding material pricing increases and FX, volume was up approximately 3% or $6M $16.1 million  Negative $9M ne

10. Slide 10: Automotive

    Automotive Q3 sales swing Net Sales $72.4 million 36% YoY Highlights  Lower sales primarily due to semiconductor chip shortages Adjusted  Prior year EU sales included $18M related to our Austrian air- EBITDA* cooled business that was divested earlier this year  NA down 46% and Asia down 17% $(0.8

11. Slide 11: Cash Flow & Net Debt

    Cash Flow & Net Debt YTD Free Cash Flow* ($23) million  Positive Q3 free cash flow of $16M from improved cash earnings and working Anticipating further capital  Difficult year-over-year comparatives due to the lack of benefits from prior year free cash flow pandemic actions and current supply chai

12. Slide 12: Fiscal 2022 Outlook

    Fiscal 2022 Outlook (in millions) Guidance Comments FY22 Sales by Market Outlook Global BHVAC +25% – 30% Net sales $1,989 to $2,098 +10% to +16% CIS +15% – 20% HDE +20% - 25% Adjusted EBITDA* $145 to $160 (12%) to (3%) Automotive -25% - 20% Maintaining full-year outlook for revenue and Adjusted EBIT

13. Slide 13: Appendix

    ») ODINE APPENDIX

14. Slide 14: Q3 GAAP Income Statement

    Q3 GAAP Income Statement MopinE ‘Always Innovating. Always improving. (In millions) Q3 Q3 2022 2021 Net sales $ 5022 $ 484.3 Cost of sales 427.6 401.6 Gross profit 74.6 82.7 Selling, general & administrative expenses 50.3 56.1 Restructuring expenses 2.1 0.9 Impairment charges (reversals) - net (57.2

15. Slide 15: Non-GAAP Reconciliations

    Non-GAAP Reconciliations * See next slide for footnotes regarding these adjustments 15

16. Slide 16: Non-GAAP Reconciliations

    Non-GAAP Reconciliations 16

17. Slide 17: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Segment Adjusted EBITDA and margin (In millions) 17

18. Slide 18: Non-GAAP Reconciliations

    Non-GAAP Reconciliations 18

19. Slide 19: Non-GAAP Reconciliations

    Non-GAAP Reconciliations 19

20. Slide 20: Non-GAAP Reconciliations

    Non-GAAP Reconciliations The Company’s fiscal 2022 guidance includes adjusted EBITDA, which is a non-GAAP financial measure. The full-year fiscal 2022 guidance for adjusted EBITDA is based upon the Company’s estimates for interest expense of approximately $15 to $16 million, a provision for income t

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