Slide 1: Presenters
Jonathan J. Schlemmer Chief Operating Officer Chuck Hinrichs Vice President Chief Financial Officer Mark J. Gliebe President and Chief Executive Officer John M. Perino Vice President Investor Relations
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our management's judgment regarding future events. In many cases, you can identify forward-looking statements by term
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 2 We prepare financial statements in accordance with accounting principles generally accepted in the United States (GAAP). We also disclose adjusted diluted earnings per share (EPS), adjusted gross profit, adjusted gross profit as a percentage of net sales, and free cash
Slide 4: Agenda
Agenda 3 Mark Gliebe, CEO - Opening Comments Chuck Hinrichs, CFO - Financial Update Jon Schlemmer, COO - Products, Markets & Operations Update Mark Gliebe - 2nd Quarter Outlook & Current View of EPC Transaction Questions & Answers Mark Gliebe - Closing Comments Mark Gliebe, CEO - Opening Comments Ch
Slide 5: Opening Comments
Opening Comments 4 Solid 3rd Quarter Results - Adjusted EPS Exceeded Guidance EPC - Meeting / Exceeding Expectations Record Quarterly Sales, Adjusted EPS and Cash Flow Strength in C&I, Mechanical, International and EPC Continued Weakness in HVAC Free Cash Flow 133% of Net Income Acquisition Pipeline
Slide 6: Quarter Highlights
Quarter Highlights 5 Closing of EPC Acquisition Strength in C&I, Mechanical, International and EPC Businesses Strong Free Cash Flow Continued Energy Efficient Product Introductions Pricing and Productivity Offset Inflation in Quarter
Slide 7: Quarter Highlights: GAAP to Adjusted Diluted EPS
Quarter Highlights 6 3Q11 GAAP Diluted EPS $ 1.13 Gain on Divestiture of Pool & Spa (0.10) EPC PAA and Acquisition Costs 0.30* 3Q11 Adjusted Diluted EPS $ 1.33 * Includes: Inventory Purchase Accounting Adj. $10.3 million ($0.18 EPS) Acquisition Costs of $5.8 million ($0.10 EPS) Incremental D&A of $1
Slide 8: Quarter Highlights
Quarter Highlights 7 EPC and C&I Outperformed Expectations + Stronger Sales Implemented Cost and Spending Controls Foreign Currency Gains + Commodity Costs + HVAC Sales -
Slide 9: Sales Growth and Financial Highlights
(CHART) 8 Sales Growth - Up 24.7% Key Drivers EPC and the other acquired businesses Price F/X Benefit of 1.8% Financial Highlights Adj. Gross Profit - Up 140bps Price and Productivity Gains Covered Cost Inflation Included $10.3 million of Inventory PAA Includes Acquisition Synergies Free Cash Flow $
Slide 10: Fourth Quarter 2011 Guidance
Fourth Quarter 2011 Guidance Adjusted EPS Guidance of $0.67 to $0.73 Includes EPC Operating Results Excludes $15 million ($0.25 EPS) of Inventory PAA at EPC Lower Sales Volume Impacted By: Continued Weak HVAC China Slowing EPC Seasonality Commodity Costs Moderating 9
Slide 11: Operations Update - Sales
Operations Update - Sales 10 North American C&I Up 15% Global Generators Up 31% Mechanical Sales Up 10% Sales Outside US Up 44% NA Residential HVAC Sales decreased 20%
Slide 12: Operations Update - New Products
Operations Update - New Products 11 Energy Efficient Sales 15% of Sales Launched 12 New Products In Q3 On Track for 50 New Product Introductions in 2011
Slide 13: New Products - Air Moving
New Products - Air Moving 12 E-Star Water Heater Blower Used By OEM's To Create Energy Star Rated Gravity Vent Water Heaters Increases Water Heater Efficiency By 17% Increases Hot Water Output
Slide 14: New Products - Ventilation
13 New Products - Ventilation Bath Ventilation Motor Rotor With Low Cost Ferrite Magnets Variable Speed Control Air Flow and Time Delay Up To 75% Less Power Used and Quiet Operation
Slide 15: Operations Update: EPC Integration
Operations Update 14 EPC Integration Management Talent Customer Focus Accelerating Cost Synergy Realization Identifying Cross Selling Opportunities Meeting / Exceeding Acquisition Targets
Slide 16: Summary
Summary 15 EPC Integration Progressing Very Well Pricing Initiatives Offset Current Commodity Inflation New Product Introductions Continue to Provide Exciting Solutions for Our Customers 4th Quarter Guidance Reflects Strength in Most Businesses Continuing to Generate Strong Free Cash Flow
Slide 17: Questions and Answers
16 Questions and Answers
Slide 18: APPENDIX - Non GAAP Measures
APPENDIX - Non GAAP Measures 17
Slide 19: SSREGAL
SSREGAL BELOIT