Slide 1: 3rd Quarter 2022 Earnings Conference Call
////////////////// 3rd Quarter 2022 Earnings Conference Call October 27, 2022
Slide 2: Safe Harbor
Safe Harbor ////////////////// Today’s presentation includes forward-looking statements that reflect management’s current expectations about the Company’s future business and financial performance. These statements are subject to certain risks and uncertainties that could cause actual results to dif
Slide 3: Financial Results
Financial Results ////////////////// Statement of Earnings Third Quarter September Year to Date $ in millions except per share amounts 2022 2021 Change 2022 2021 Change Net Sales $ 545.6 $ 486.7 12 % $1,588.5 $1,448.0 10 % Gross Profit 261.1 248.2 5% 784.6 759.4 3% % of Net Sales 47.8% 51.0% (3.2) p
Slide 4: Net Sales
Net Sales ////////////////// Components of Net Sales Change 2022 Third Quarter Segment Region Industrial Process Contractor Americas EMEA Asia Pacific Consolidated Volume and Price 8% 30 % 16 % 18 % 10 % 17 % 16 % Acquisitions 0% 4% 0% 1% 0% 1% 1% Currency (7)% (4)% (4)% 0% (13)% (8)% (5)% Total 1%
Slide 5: Operating Earnings
Operating Earnings ////////////////// Third Quarter Sept. Year to Date 2021 Operating Earnings, as reported ($M and % of sales) $ 125 26 % $ 387 27 % Translation effect (12) (2) (26) (2) Pricing, sales volume and product cost 29 (2) 60 (2) Volume effect on expense leverage 1 4 (1) 3 2022 Operating E
Slide 6: Third Quarter 2022
Third Quarter 2022 ////////////////// ► Up 12 percent from 2021, up 17 percent at consistent translation Net Sales rates. Sales from acquired businesses contributed 1 percentage point ► Margin rate down 3 percentage points from 2021 Gross Margin Realized pricing not enough to offset the unfavorabl
Slide 7: September Year to Date 2022
September Year to Date 2022 ////////////////// ► Up 10 percent from 2021, up 13 percent at consistent Net Sales translation rates. Sales from acquired businesses contributed 1 percentage point ► Margin rate down 3 percentage points from 2021 Gross Margin Realized pricing not enough to offset the u
Slide 8: 2022 Outlook
2022 Outlook ////////////////// Constant currency basis and excluding acquisitions completed in the prior 12 months Americas EMEA Asia Pacific Total Current Sales Growth Sales Growth Sales Growth Sales Growth Q3 2022 18% Q3 2022 10% Q3 2022 17% Q3 2022 16% Environment Sept. 2022 YTD 13% Sept. 2022 Y
Slide 9: Cash Flow and Liquidity
Cash Flow and Liquidity ////////////////// Net Earnings, as Adjusted, and Cash from Operating Activities $ in millions $131 $137 $137 $120 $118 $116 $117 $115 $102 $106 $102 $102 $108 $100 $100 $99 $104 $31 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Net Earnings, as Adjusted Cash from Ope
Slide 10: Other Discussion Items
Other Discussion Items ////////////////// Capital expenditure expectations of approximately $230 million in 2022, Cap Ex including approximately $130 million in facility expansion projects Unallocated corporate expenses in 2022 are expected to be approximately Expenses $29 - $31 million 2.5 million
Slide 11: Industrial Segment Results
Industrial Segment Results ////////////////// $ in millions Third Quarter September Year to Date Sept. YTD 2022 Industrial Segment 2022 2021 Change 2022 2021 Change Net Sales as % of Graco Net Sales Americas $ 60 $ 54 11 % $ 176 $ 152 15 % EMEA 48 54 (11) 142 145 (2) Asia Pacific 48 47 3 141 132 7 T
Slide 12: Operating Margins: Industrial Segment Results
Industrial Segment Results ////////////////// Change in % of net sales Third Quarter Sept. Year to Date 2021 Operating Earnings 33 % 32 % Currency Translation (1) 0 Product cost (1) (1) Volume effect on expense leverage 4 4 2022 Operating Earnings 35 % 35 % Industrial Segment Net Sales and Operating
Slide 13: Process Segment Results
Process Segment Results ////////////////// $ in millions Third Quarter September Year to Date Sept. YTD 2022 Process Segment Net Sales as % of Graco 2022 2021 Change 2022 2021 Change Net Sales Americas $ 77 $ 58 31 % $ 222 $ 175 27 % EMEA 17 14 20 51 44 16 23% Asia Pacific 32 24 34 92 66 40 Total $
Slide 14: Operating Margins: Process Segment Results
Process Segment Results ////////////////// Change in % of net sales Third Quarter Sept. Year to Date 2021 Operating Earnings 22 % 23 % Currency translation (1) (1) Product cost and product and channel mix (3) (3) Volume effect on expense leverage 6 5 2022 Operating Earnings 24 % 24 % Process Segment
Slide 15: Contractor Segment Results
Contractor Segment Results ////////////////// $ in millions Third Quarter September Year to Date Sept. YTD 2022 Contractor Segment Net Sales as % of Graco 2022 2021 Change 2022 2021 Change Net Sales Americas $ 197 $ 168 17 % $ 567 $ 520 9% EMEA 46 47 (1) 132 150 (12) 48% Asia Pacific 21 21 (1) 65 64
Slide 16: Operating Margins: Contractor Segment Results
Contractor Segment Results ////////////////// Change in % of net sales Third Quarter Sept. Year to Date 2021 Operating Earnings 25 % 28 % Currency translation (1) (2) Product cost (2) (3) Volume effect on expense leverage 3 2 2022 Operating Earnings 25 % 25 % Contractor Segment Net Sales and Operati
Slide 17: Financial Results Adjusted for Comparability
Financial Results Adjusted for Comparability ////////////////// Certain items have caused fluctuation in the Company’s financial results. Excluding the impacts of these items presents a more consistent basis for comparison of financial results. A calculation of the non-GAAP measurements follows: Non
Slide 18: Worldwide Leaders in Fluid Handling
MOVE / MEASURE / MIX / CONTROL / DISPENSE / S P R AY WORLDWIDE LEADERS IN FLUID HANDLING www.graco.com