The Middleby Corporation · NASDAQ:MIDD
The Middleby — Q4 2021 Earnings Presentation
15 slides from The Middleby's earnings presentation, Feb 22, 2022
Slide 1: Q4 Earnings Update
Q4 Earnings Update February 22, 2022 www.middleby.com 1
Slide 2: Middleby Segment Summary
Middleby Segment Summary THREE INDUSTRY-LEADING FOODSERVICE PLATFORMS 2021 REVENUE BY SEGMENT Food Processing 15% • 100+ highly-respected, leading brands Commercial 62% Residential • Global business infrastructure 23% • Highly synergistic business segments • Technology and innovation leader 2021 REV
Slide 3: Financial Results
Financial Results Q4 2021 FINANCIAL RESULTS RESULTS COMMENTARY • Revenue increase of 12.6% organically as compared to prior (in millions, except percentages) Q4 ‘21 Q4 ‘20 Change year, with growth across all segments: • Commercial Foodservice 18.4% Net Sales $866.4 $729.3 18.8% • Residential Kitchen
Slide 4: Commercial Foodservice
Commercial Foodservice Q4 2021 FINANCIAL RESULTS RESULTS COMMENTARY • Revenue growth across all regions globally as compared to (in millions, except percentages) prior year. Q4 ‘21 Q4 ‘20 Change • Margin expansion from prior year provided by sales volume, Revenues $531.3 $428.4 24.0% pricing, profit
Slide 5: Residential Kitchen
Residential Kitchen Q4 2021 FINANCIAL RESULTS RESULTS COMMENTARY • Revenue growth across all regions globally as compared to (in millions, except percentages) prior year. Q4 ‘21 Q4 ‘20 Change • Organic EBITDA improvements reflect higher sales volumes, Revenues $209.5 $180.1 16.3% pricing, benefits f
Slide 6: Food Processing
Food Processing Q4 2021 FINANCIAL RESULTS RESULTS COMMENTARY • Revenue growth domestically driven by protein products. (in millions, except percentages) Q4 ‘21 Q4 ‘20 Change • Q4 backlog is up 40%+ from prior year end and is up 5%+ over Q3 ‘21. Revenues $125.6 $120.8 4.0% • Order rates increased 5%+
Slide 7: Business Conditions – 2021 Order Trends
Business Conditions – 2021 Order Trends Middleby’s Three Innovative Businesses All segments reported positive order trends year to date for 2021 as compared to amounts reported for 2019 The order data below compares Q4 ‘21 to Q4 ‘19 Backlog levels have positioned all the segments for growth in
Slide 8: Debt and Liquidity
Debt and Liquidity Q4 2021 LEVERAGE RATIO (IN $000s) LIQUIDITY COMMENTARY Cash $180.4 • Q4 Highlights Debt $2,414.3 • Used $575 million to fund acquisitions Net Debt* $2,325.5 • Operating cash flows of $77 million despite an increase in LTM EBITDA* $823.2 working capital of $72 million due to strong
Slide 9: Strategic M&A Focus
Strategic M&A Focus Middleby has successfully deployed capital to acquire brands over the years which are strategically complementary to the current portfolio RECENT M&A ACTIVITY Middleby has completed 20+ transactions since the beginning of 2019, investing in key Strategic Investment Themes techn
Slide 10: Our Expanding Outdoor Residential Platform
Our Expanding Outdoor Residential Platform ACQUISITIONS SUMMARY FINANCIAL OVERVIEW • Acquisitions closed on December 27, 2021 • Consolidated purchase price of approximately $570 million cash and $2.5 $400M+ >10% 2021 2021 million common stock issued Net Sales EBITDA Margin • Funded under Middleby’s
Slide 11: Complementary Indoor and Outdoor Residential Platforms
Complementary Indoor and Outdoor Residential Platforms Middleby Residential Product Mix Indoor Brands Newly Acquired Outdoor Brands 35% 55% 10% Existing Outdoor Brands ~$1.2 Billion www.middleby.com 11
Slide 12: Positioned to Capture Favorable Trends in a Growing Market
Positioned to Capture Favorable Trends in a Growing Market Fueled by Enduring Tailwinds Spending More Time Outdoors Increasing Number of Consumers Own or Plan to BBQ is the #1 Own Charcoal Outdoor Equipment Outdoor living activity in 2020(3) +20% More in 2021 vs. 2020 Moving to the Suburbs 91% Subur
Slide 13: Middleby’s Track Record of Expanding Residential Margins
Middleby’s Track Record of Expanding Residential Margins Application of the ‘Middleby Way’ to EBITDA Margin Improvement www.middleby.com Expected Margin Improvement through Synergies and Cost-Savings 13
Slide 14: 2022 New Product Highlights
2022 New Product Highlights CROWN SERIES www.middleby.com 14
Slide 15: Ventless Variable Cooking Platform
Ventless Variable Cooking Platform Highlights • 4 in 1 – Convection, microwave, radiant, and conduction • Uniquely positioned to target emerging markets • Cook, toast, reheat, and grill in one platform • Compact footprint at only 16” wide • Easy to use platform ideal for menu expansion • Green techn