Helios Technologies : Stifel VNDR Investor Presentation – March 2021

Investor Presentation

March 23, 2021

Josef Matosevic

President & CEO

Tricia Fulton

Chief Financial Officer

Tania Almond

VP, IR and Corp. Comm.

Safe Harbor Statement

This presentation and oral statements made by management in connection herewith that are not historical facts are "forward‐looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward‐looking statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied by such statements. They

include statements regarding current expectations, estimates, forecasts, projections, our beliefs, and assumptions made by Helios Technologies, Inc. ("Helios" or the "Company"), its directors or its officers about the Company and the industry in which it operates, and assumptions made by management, and include among other items, (i) the Company's strategies regarding growth, including its intention to develop new products and make acquisitions; (ii) the timing of completion of the proposed acquisition of Balboa Water Group (the "Acquisition") and the expected benefits and synergies from the Acquisition; (iii) the Company's financing plans; (iv) trends affecting the Company'sfinancial condition or results of operations; (v) the Company's

ability to continue to control costs and to meet its liquidity and other financing needs; (vi) the declaration and payment of dividends; and (vii) the Company's ability to respond to changes in customer demand domestically and internationally, including as a result of standardization. In addition, we may make other written or oral statements, which constitute forward-looking statements, from time to time. Words such as "may," "expects," "projects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," variations of such words, and similar expressions

are intended to identify such forward-looking statements. Similarly, statements that describe our future plans, objectives or goals also are forward-looking statements. These statements are not guaranteeing future performance and are subject to a number of risks and uncertainties. Our actual results may differ materially from what is expressed or forecasted in such forward- looking statements, and undue reliance should not be placed on such statements. All forward-looking statements are made as of the date hereof, and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Factors that could cause the actual results to differ materially from what is expressed or forecasted in such forward-looking statements include, but are not limited to, (i) conditions in the capital markets, including the interest rate environment and the availability of capital; (ii) the risk that the Acquisition will not be consummated in a timely manner or at all, our failure to realize the benefits expected from the Acquisition, our failure to promptly and effectively integrate the Acquisition and the ability of Helios to retain and hire key personnel, and maintain relationships with suppliers; (iii) changes in the competitive marketplace that could affect the Company's revenue and/or costs, such as increased competition, lack of qualified engineering, marketing, management or other personnel, and increased labor and raw materials costs; and (iv) new product introductions, product sales mix and the geographic mix of sales nationally and internationally. Further information relating to factors that could cause actual results to differ from those anticipated is included but not limited to information under the heading Item 1. "Business", Part I, Item 1A. "Risk Factors" in the Company's Form 10-K for the year ended December 28, 2019 and Part II, Item 1A. "Risk Factors" in the Company's Form 10-Q for the quarter ended March 28, 2020.

Helios has presented forward-looking statements regarding non-GAAP cash EPS and Adjusted EBITDA margin. These non-GAAP financial measures are derived by excluding certain amounts, expenses or income from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts that are excluded from these non-GAAP measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income recognized in a given period. Helios is unable to present a quantitative reconciliation of forward-looking non-GAAP cash EPS and Adjusted EBITDA margin to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict all the necessary components of such GAAP measures without unreasonable effort or expense. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on Helios's

full year 2020 financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end and year-end adjustments. Any variation between Helios's actual results and preliminary financial data set forth above may be material.

This presentation includes certain historical non-GAAP financial measures, which the Company believes are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. The Company has provided reconciliations of comparable GAAP to non-GAAP measures in tables found in the Supplemental Information portion of this presentation.

Growing, Global Industrial Technology Leader

2020 Revenue by Segment $523 million

Helios Technologies is a global leader in highly engineered motion control and electronic controls technology for diverse end markets.

Note: Market data as of March 19, 2021; Financial data represents the full year ended January 2, 2021

HydraulicsElectronics

Executing to Plan

Achieve global technology leadership in the industrial goods sector by 2025 with critical mass exceeding $1 BILLION in sales while maintaining superior profitability and financial strength.

Three Megatrends Impacting Our Markets

GlobalizationSophistication of Safe Machinery & EquipmentComputing Power

Population

GrowthUrbanization & EnvironmentProductivity & EfficienciesAutomationElectrification & DigitalizationEnergy Saving

LEVERAGE GLOBAL EXPANSION OPPORTUNITIES

Strategic Roadmap

Strategy for Growth

FY 2020 Revenue by Geography

Brings deep commercial, operational and M&A experience

Established Vision 2025 StrategyAcquired Enovation Controls

$250m purchase price

Acquired Faster

$531m purchase price

Acquired Custom Fluidpower

$26m purchase price

Appointed New CEOChanged Name to Helios TechnologiesChanged Ticker to HLIOAcquired Balboa Water Group

$219m purchase price

FY 2020 Revenue by Channel to Market

Acquired BJN Technologies and Opened the Helios Center for Engineering Excellence

HELIOS TECHNOLOGIES' EVOLUTION TO GLOBAL TECHNOLOGY LEADERSHIP

Leadership in Niche Markets: Hydraulics

Leading market position in global cartridge valve marketLeading market position in global quick release couplings market

Focused on expanding addressable market

FLeX solenoid-operated directional valves

Complex, dense Integrated packages

Quick Release Coupling ManifoldMultiFaster Couplings

FY 2020

Revenue	$407 million
Gross Profit	$150 million
Gross Margin	36.9%

Operating Income $82 million Operating Margin 20.1%

Sales by Region

APAC 36%Americas 32%EMEA 32%

Leadership in Niche Markets: Electronics

Increasing addressable market

FY 2020

Revenue $116 million Gross Profit $48 million Gross Margin 41.3% Operating Income $19 million Operating Margin 16.7%

Sales by Region

Strategic Vision

Pathway to Superior Profitability

Pathway to Superior Growth

REVENUE AND ADJUSTED OPERATING MARGIN

(IN MILLIONS) Assumption: Includes COVID -19 pandemic impact in 2020

2015

Note: Components may not add to totals due to rounding

2020

(1) See Supplemental Information for definition of Adjusted Operating Margin and reconciliation from GAAP and other disclaimers regarding non-GAAP information

2025 Target

Balboa Water: Provider of Complementary Proprietary Controls Technology Adding Scale and Diversification

Global provider of leading control solutions complemented by a full suite of integrated components

New state-of-the-art manufacturing facility with low-cost footprint

3 Robust historical organic growth of 4%+

Electronic Controls Provides Foundation for an End-to-End OEM Solution

Circulation

Air Controls

• • Proven product design to enable lower price point offerings for new applications

• • Pipeline of innovative new products

Select End Markets

Wind Energy

HVAC

Commercial Food Service Equipment

✓

Adj. EPS accretive day one onward

✓ Cash ROIC > Helios's WACC in year one

(1) Pro Forma as anticipated at transaction close

M&A Scorecard

Acquisition Type:

Transformational

Transformational

Flywheel

Transformational

Flywheel

Meets Growth & Profitability Goals
Enhances Technology/IP
Expands Vertical Markets
Deepens Geographic Reach
Accretive to EPS
Cost Synergies
Technology/Market Integration

Solid Financial Performance

($ in millions, except per share data)

Revenue

Gross Profit & Margin

$508

$555

2017

$523

2018

Hydraulics

2019

Electronics

2020

2017

2018

2019

2020

EPS & Non-GAAP Cash EPS

Adjusted EBITDA & Margin

$2.30

$2.43

$131

$2.24

25.4%	24.5%	23.6%	23.2%
2017	2018	2019	2020	2017	2018	2019	2020

Earnings per Share

Note: Components may not add to totals due to rounding

Non-GAAP Cash EPS

$124

(1) See Supplemental Information for definition of Non-GAAP Cash EPS and Adjusted EBITDA and Margin, and reconciliation from GAAP and other disclaimers regarding non-GAAP information

$121

Strong Liquidity Position

($ in millions)

Capital Structure Ending Q4 2020

Capital Allocation Priorities

$400 Total RCF

$256 Drawn

$25

$169

$207 Balance

Term LoansRevolving Credit

FacilitiesCash

Liquidity (2)

• • Net Debt / Adj. EBITDA(1): 3.0x - Goal: Net Debt / Adj. EBITDA below 2.0x

• • Maintaining financial flexibility in uncertain macroeconomic environment

Note: Components may not add to totals due to rounding

• 1 Organic Growth

• 2 Debt Reduction

• 3 Acquisitive Growth

• 4 Support Dividend

• (1) Information as of January 2, 2021. Based on adjusted EBITDA on a trailing twelve months basis. See supplemental slide for net debt-to-Adjusted EBITDA reconciliation and other important information regarding Helios's use of net debt-to-Adjusted EBITDA.

• (2) Liquidity is based on actual cash and borrowing capacity as of January 2, 2021; revolving credit facilities also allow for a $300 million accordion, subject to certain pro forma compliance requirements, not reflected above.

($ in millions)

Three Months Ended	YTD	YTD
1/2/21	12/28/19	1/2/21	12/28/19
Net cash provided by operating activities	31.6	39.6	108.5	90.5
CapEx	(7.4)	(5.4)	(14.5)	(25.0)
Free cash flow (FCF)	$24.2	$34.2	$94.0	$65.5

Note: Components may not add to totals due to rounding

Outstanding cash generation in Q4 2020

• • Focus on working capital management drove free cash flow

• • 2020 CapEx intentionally lower than historical rates at ~3% of sales; expect 2021 CapEx closer to growth investment level of ~5% of sales

• • Sustainable changes in operational efficiency expected to continue to drive cash generation

2017

Solid Cash Flow

Free Cash Flow(1)

2018

2019

2020

SIGNIFICANT FREE CASH FLOW GENERATION PROVIDES FINANCIAL FLEXIBILITY

(1) Free cash flow is defined as cash provided by operating activities minus capital expenditures (2) 2019 Free cash flow adjusted for $10.7m contingent liability that impacted operating cash flow instead of financing (3) free cash flow conversion is defined as free cash flow divided by net income; in 2020 adjusted for a goodwill impairment of $31.9m in Q1 2020

Strategic Direction

CONTINUED CONFIDENCE IN SUCCESSFUL EXECUTION WITH AUGMENTED VALUE STREAMS

Commitment to Shareholder Value Creation

• 1 NICHE TECHNOLOGY -A global niche technology leader in Hydraulics and

  Electronics with highly engineered and comprehensive in-house value add capabilities

• 2 SUPERIOR FINANCIAL PERFORMANCE - Proven track record of growing 2x faster than market at superior profitability levels (>24% adjusted EBITDA margin and >10% free cash flow)

• 3 BROAD DIVERSIFICATION by 1) technology, 2) end markets, and 3) geographies

Supplemental Information

Segment Data

($ in thousands) Three Months Ended For the Year EndedJanuary 2, 2021 December 28, 2019 January 2, 2021 December 28, 2019

Sales:

Hydraulics $ 103,079 $ 102,550 $ 407,192 $ 442,812

Electronics 48,539 23,377 115,848 111,853

Consolidated $ 151,618 $ 125,927 $ 523,040 $ 554,665

Gross profit and margin:

Hydraulics $ 37,617 $ 37,248 $ 150,312 $ 161,401

36.5% 36.3% 36.9% 36.4%

Electronics 16,973 10,179 47,790 50,881

35.0% 43.5% 41.3% 45.5%

Corporate and other (1,874) - (1,874) -

Consolidated $ 52,716 $ 47,427 $ 196,228 $ 212,282

34.8% 37.7% 37.5% 38.3%

Operating income and margin:

Hydraulics $ 19,584 $ 20,275 $ 81,996 $ 86,027

19.0% 19.8% 20.1% 19.4%

Electronics 8,963 3,016 19,363 21,994

18.5% 12.9% 16.7% 19.7%

Corporate and other (18,147) (4,519) (65,947) (17,906)

Consolidated $ 10,400 $ 18,772 $ 35,412 $ 90,115

6.9% 14.9% 6.8% 16.2%

Sales by Geographic Region & Segment

2020 Sales by Geographic Region and Segment ($ in millions)

Q1

2019 Sales by Geographic Region and Segment ($ in millions)

% Change y/yQ2

% Change y/yQ3

% Change y/yQ4

% Change y/yYTD 2020

% Change y/yQ1

% Change y/yQ2

% Change y/yQ3

% Change y/yQ4

% Change y/yYTD 2019

% Change y/y

EMEA:

Hydraulics

Electronics

(6%)

Consol. EMEA % of total APAC:

33.5 2.5 36.0 28%

(20%) 0%

31.2 1.9

• (19%) 33.1 28%

(15%) 6%

32.1 1.5

• (14%) 33.6 27%

1% (29%)

(1%)

34.4 4.9

39.3 26%

11% 145%

131.2 10.8

• 19% 142.0

  (7%) 29% (5%)

  27%

Total

$ 129.5

• (12%) $ 119.3

• (17%) $ 122.6

• (11%) $ 151.6

• 20% $ 523.0

EMEA:

Hydraulics Electronics Consol. EMEA % of total

41.8 2.5 44.3 30%

113% (7%) 99%

36.8 1.8 38.6 27%

(9%) (33%)

31.9 2.1

(8%) (22%)

31.1 (11%) 141.6 9% 2.0 0% 8.4 (17%)

• (11%) 34.0 25%

  (9%)

  33.1

  (10%) 150.0 7%

  26% 27%

Adjusted Operating Income Reconciliation

(Unaudited)

For the Year Ended

($ in thousands)

January 2,

2021

GAAP operating income	$	35,412
Acquisition-related amortization of intangible assets	22,114
Acquisition and financing-related expenses	7,264
Restructuring charges	361
CEO and officer transition costs	2,592
Goodwill impairment	31,871
Inventory step-up amortization	1,874
M&A integration costs	257
Non-GAAP adjusted operating income	$	101,745
GAAP operating margin	6.8%
Non-GAAP Adjusted operating margin	19.5%

Non-GAAP Financial Measure:

Adjusted operating margin is adjusted operating income divided by sales. Adjusted operating income and adjusted operating margin are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Sun believes that providing non-GAAP information such as adjusted operating income and adjusted operating margin are important for investors and other readers of Helios' financial statements, as they are used as analytical indicators by Sun's management to better understand operating performance. Because adjusted operating income and adjusted operating margin are non-GAAP measures and are thus susceptible to varying calculations, adjusted operating income and adjusted operating income margin, as presented, may not be directly comparable to other similarly titled measures used by other companies.

Adjusted EBITDA Reconciliation

(Unaudited)

For the Year Ended

($ in thousands)

January 2, 2021

December 28, 2019

December 29, 2018

December 30, 2017

Net income

$

• 14,218 $

46,730 $ 31,558

9,829

9,665 15,986

109,985 70,515

Interest expense, net Income tax provision Depreciation and amortization EBITDA

13,286

39,695

7,264

5,685 1,019

Acquisition-related amortization of inventory step-up Acquisition and financing-related expenses Restructuring charges

77,028 -

One-time operational items

- 2,907

361 -

Change in fair value of contingent consideration Foreign currency forward contract loss

(47)

Loss on disposal of intangible asset CEO and officer transition costs Goodwill impairment

- -

2,592

Other

31,871 -

Inventory step-up amortization M&A integration costs Adjusted EBITDA

1,874

257

• 60,268 $ 15,387 15,039 35,215 125,909 - 11 1,724 - 652 - 2,713 - - 127 - -

13,876 3,781

39,714 19,190

4,441 1,774

170 1,462

1,482 9,476

2,535 - - - - - -

- - - - - - -

$

Adjusted EBITDA margin

121,200 23.2%

$

131,136 23.6%

$

124,298 24.5%

$

87,153 25.4%

Balboa Water Group pre-acquisition adjusted EBITDA TTM Pro forma adjusted EBITDA

22,589

$

143,789

Non-GAAP Financial Measure:

Adjusted EBITDA margin is Adjusted EBITDA divided by sales. Adjusted EBITDA and Adjusted EBITDA margin are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Helios believes that providing non-GAAP information such as Adjusted EBITDA and Adjusted EBITDA margin are important for investors and other readers of Helios's financial statements, as they are used as analytical indicators by Helios's management to better understand operating performance. Because Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures and are thus susceptible to varying calculations, Adjusted EBITDA and Adjusted EBITDA margin, as presented, may not be directly comparable to other similarly titled measures used by other companies.

Non-GAAP Cash Net Income Reconciliation

(Unaudited)

For the Year Ended

($ in thousands)

January 2, 2021

Net income

$

$

$

46,730 $ 31,558

5,685 1,019

Acquisition-related amortization of inventory step-up Acquisition and financing-related expenses Restructuring charges

One-time operational items

- 2,907

14,218 - 7,264 361 -

December 28,	December 29,	December 30,
2019	2018	2017

23,262 8,423

Change in fair value of contingent consideration Amortization of intangible assets

Impact of tax reform

Foreign currency forward contract loss Loss on disposal of intangible asset Other one-time tax-related items Other

CEO and officer transition costs Goodwill impairment Inventory step-up amortization M&A integration costs

Tax effect of above

(47) 22,114 - - - - - 2,592 31,871 1,874 257 (8,604)

60,268 - 11 1,724 - 652 18,065 - - 2,713 - 127 - - - - (5,823)

4,441 1,774

170 1,462

1,482 9,476

(1,400) 463

2,535 - (1,920)

- - - - - (8,850)

- - - - - - - - (8,271)

Non-GAAP cash net income

Non-GAAP cash net income per diluted share

$ $

71,900 2.24

$ $

77,737 2.43

$ $

72,135 2.30

$ $

48,811 1.81

Non-GAAP Financial Measure:

Adjusted net income per diluted share is adjusted net income divided by diluted weighted average common shares outstanding. Cash net income per share is cash net income divided by diluted weighted average common shares outstanding. Adjusted net income, adjusted net income per diluted share, cash net income and cash net income per diluted share are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Helios believes that providing non-GAAP information such as adjusted net income, adjusted net income per diluted share, cash net income and cash net income per diluted share is important for investors and other readers of Helios' s financial statements, as they are used as analytical indicators by Helios's management to better understand operating performance. Because adjusted net income, adjusted net income per diluted share, cash net income and cash net income per diluted share are non-GAAP measures and are thus susceptible to varying calculations, adjusted net income, adjusted net income per diluted share, cash net income, and cash net income per diluted share, as presented, may not be directly comparable to other similarly titled measures used by other companies.

Free Cash Flow Reconciliation

(Unaudited)

($ in thousands)

2017

2018

2019

2020

Net cash provided by operating activities

$

$

$

101,211 108,556

Contingent consideration payment in excess of acquisition date fair value Adjusted net cash provided by operating activities

$

• 27,177 $

• 49,070 $

76,186 $ 93,111

Capital expenditures and software development costs Adjusted free cash flow

49,382 - 49,382 22,205

77,450 - 77,450 28,380

• 90,480 $ 10,731

108,556 -

25,025 15,445

Net Income

60,268 14,218

Goodwill Impairment

31,558 -46,730 -

- 31,871

$

$

$

60,268

$ 46,089

Net income, less goodwill impairment Free cash flow conversion

31,558 86%

46,730 105%

126% 202%

Non-GAAP Financial Measure:

Adjusted net cash provided by operating activities is net cash provided by operating activities less contingent consideration payment in excess of acquisition date fair value. Free cash flow is net cash provided by operating activities less capital expenditures. Adjusted free cash flow is adjusted net cash provided by operating activities less capital expenditures. Each of these measures has not been determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Helios believes that providing this non-GAAP information is important for investors and other readers of Helios's financial statements, as they are used as analytical indicators by Helios's management to better understand our liquidity. Because these are non-GAAP measures, they are susceptible to varying calculations, and as presented, may not be directly comparable to other similarly titled measures used by other companies.

Net Debt-to-Adjusted EBITDA Reconciliation

(Unaudited)

As of

($ in thousands)

January 2,

2021

Current portion of long-term non-revolving debt, net	$	16,229
Revolving lines of credit	256,224
Long-term non-revolving debt, net	189,932
Total debt	462,385
Less: Cash and cash equivalents	25,216
Net debt	$	437,169
Pro forma adjusted EBITDA*	$	143,789
Ratio of net debt to TTM adjusted EBITDA	3.0
*On a pro-forma basis for Balboa Water Group

Non-GAAP Financial Measure:

Net debt is total debt minus cash and cash equivalents. Net debt-to-Adjusted EBITDA is net debt divided by Adjusted EBITDA. Net debt and net debt-to-Adjusted EBITDA are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Helios believes that providing non-GAAP information such as net debt and net debt-to-Adjusted EBITDA are important for investors and other readers of Helios's financial statements, as they are used as analytical indicators by Helios's management to better understand operating performance. Because net debt and net debt-to-Adjusted EBITDA are non-GAAP measures and are thus susceptible to varying calculations, net debt and net debt-to-Adjusted EBITDA, as presented, may not be directly comparable to other similarly titled measures used by other companies.

Investor Presentation

March 23, 2021