Slide 1: Earnings Conference Call First Quarter 2023
April 26, 2023 – 8:00am CT Earnings Conference Call First Quarter 2023
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures We want to remind everyone that our comments may contain forward-looking statements that are inherently subject to uncertainties and risks, including general economic conditions and conditions in the particular markets in which we operate, supply chai
Slide 3: Q1 2023 Performance Highlights
Q1 2023 Performance Highlights Organic Revenue(1) +3% Y-o-Y Adj. Organic Bookings(2)(3) -4% Y-o-Y Organic growth in three of five segments Quarterly Adjusted Book-to-Bill(2) (3) 1.03 0.96 1.00 Total Segment +40 bps Y-o-Y to 20.0% Earnings Margin(1) 0.90 100+ bps improvement in four out of five segme
Slide 4: Summary Corporate Q1 Results
Summary Corporate Q1 Results Q1 2023 Highlights and Comments Revenue change All-in 1% Y-o-Y organic growth in three out of five segments (Y-o-Y) Organic(1) 3% FX impact: -2.5%; acquisitions +1% Bookings change All-in(2) -9% Q1 adjusted book-to-bill(2)(3): 1.03 (Y-o-Y) Adj. Organic(2)(3) -4%
Slide 5: Segment Results
Segment Results Q1 2023 Revenue ($M) / Segment Earnings Segment Performance Commentary Y-o-Y Organic(1) ∆% % / bps ∆ Y-o-Y Strong organic growth and bookings in waste handling as chassis availability improves; $498 17% shipments in vehicle aftermarket leveling off after record 2022; declines in ae
Slide 6: Revenue & Bookings
Revenue & Bookings Q1 2023 Revenue Change in Organic Revenue(1): +$60M, or 3% Q1 ’23 Organic Rev Growth(1) ($M) 2,052 17 -12 22 -31 65 -52 19 2,079 US 56% +3% Q1 2022 DEP DCEF DII DPPS DCST FX ACQUISITIONS Q1 2023 Organic Q1 2023 Adjusted Bookings(2) Change in Adjusted Organic Bookings(2)(3): -$81M,
Slide 7: Year-to-date 2023 Free Cash Flow
Year-to-date 2023 Free Cash Flow $M Q1 ‘23 Q1 ‘22 ∆ Net earnings 229 226 +3 D&A 78 79 -1 Change in working capital 5 -175 180 Change in other(1) -71 -106 35 Cash flow from operations 241 24 217 Capex -48 -50 2 Free cash flow(2) 193 -27 220 FCF % of revenue(2) 9% (1)% FCF % of adj. earnings(2) 71% 12
Slide 8: Demand Trends and Backlog Strength Driving Robust Growth Outlook
Demand Trends and Backlog Strength Driving Robust Growth Outlook Total Backlog / 2023 Outlook % of Full Year Revenue(2) ’23 Organic ’23 Q1 ’23 Segment Growth(1) Margin Q1 ’19 Q1 ‘23 Adj. B-t-B(2) Comments Strong growth outlook across most businesses. Record backlogs in waste DEP MSD ESG 1.08 handl
Slide 9: New Products and Investments Driving Market Wins
New Products and Investments Driving Market Wins Recent Product Launches Key Current Investments OpCo Product Description OpCo Description Status All-electric side-loader refuse collection 50% global capacity expansion and new R&D / ESG vehicle (to be showcased at Waste Expo 30% SWEP engineering cen
Slide 10: FY 2023 Guidance
FY 2023 Guidance Revenue Growth Rate(1): 3% - 5% Through-Cycle Adj. EPS(2) Accretion Effective Tax rate: 21% – 21.5% $8.85-$9.05 +12-13% CAGR $8.45 $7.63 EPS and other GAAP EPS: $7.81 - $8.01 $5.93 $5.67 Adjusted EPS(2): $8.85 - $9.05 $4.97 Free Cash Flow(2): 15% - 17% of Revenue Cash 2018
Slide 11: Appendix
Appendix 11
Slide 12: Q1 2023 Total Segment Earnings and Adjusted Net Earnings
Q1 2023 Total Segment Earnings and Adjusted Net Earnings Change in Total Segment Earnings(2) +$12M 21.7% 21.4% +40 bps 20.0% 19.6% ($M) 403 36 439 13 -1 10 -30 20 450 35 415 TOTAL SEG. NON-ACQ. ADJ. DEP DCEF DII DPPS DCST ADJ. NON-ACQ. TOTAL SEG. EARNINGS D&A (1) EBITDA (2) EBITDA (2) D&A (1) EARNIN
Slide 13: Organic Revenue, Bookings and Adjusted Bookings Bridges
Organic Revenue, Bookings and Adjusted Bookings Bridges 13
Slide 14: Q1 2022 to Q1 2023 Revenue, Bookings and Adjusted Bookings Bridges
Q1 2022 to Q1 2023 Revenue, Bookings and Adjusted Bookings Bridges Note: Numbers may not add due to rounding (1) Reversal of ~$90M of previously-booked orders from one customer in food retail. 14
Slide 15: Reconciliation of Net Earnings to Total Segment Earnings and Adjusted Segment EBITDA
Reconciliation of Net Earnings to Total Segment Earnings and Total Adjusted Segment EBITDA Note: Numbers may not add due to rounding (1) Other depreciation and amortization relates to property, plant, and equipment and intangibles, and excludes amounts related to purchase accounting expenses and 15
Slide 16: Reconciliation of Net Earnings to Adjusted Net Earnings and Diluted EPS
Reconciliation of Net Earnings to Adjusted Net Earnings and Diluted EPS to Adjusted Diluted EPS Note: Numbers may not add due to rounding 16
Slide 17: Backlog and Bookings
Backlog and Bookings Note: Numbers may not add due to rounding (1) Q1 2023 includes the reversal of ~$90M of previously-booked orders from one customer in food retail. 17
Slide 18: Reconciliation of Free Cash Flow and EPS to Adjusted EPS
Reconciliation of Free Cash Flow and EPS to Adjusted EPS Note: Numbers may not add due to rounding 18
Slide 19: Non-GAAP Definitions
Non-GAAP Definitions Definitions of Non-GAAP Measures: Adjusted Net Earnings: is defined as net earnings adjusted for the effect of purchase accounting expenses, restructuring and other costs/benefits, Tax Cuts and Jobs Act, gain/loss on dispositions, gain/loss on extinguishment of debt and gain/los
Slide 20: Performance Measures Definitions
Performance Measures Definitions Definitions of Performance Measures: Bookings represent total orders received from customers in the current reporting period. This metric is an important measure of performance and an indicator of revenue order trends. Adjusted Bookings represent bookings excluding a
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