Q2 FY 2021
EARNINGS CALL PRESENTATION
May 5, 2021
Hillenbrand Participants
Joe Raver | Kristina Cerniglia | Kaveh Bakhtiari, CFA |
President & CEO | SVP & CFO | Senior Director, IR |
EARNINGS PRESENTATION | 2
Disclosure Regarding Forward-Looking Statements
Throughout this presentation, we make a number of "forward-looking statements" that are within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and that are intended to be covered by the safe harbor provided under these sections. As the words imply, these are statements about future sales, earnings, cash flow, results of operations, uses of cash, financings, share repurchases, ability to meet deleveraging goals, and other measures of financial performance or potential future plans or events, strategies, objectives, beliefs, prospects, assumptions, expectations, and projected costs or savings or transactions of the Company that might or might not happen in the future, as contrasted with historical information. Forward-looking statements are based on assumptions that we believe are reasonable, but by their very nature are subject to a wide range of risks. If our assumptions prove inaccurate or unknown risks and uncertainties materialize, actual results could vary materially from Hillenbrand's (the "Company") expectations and projections. Words that could indicate that we are making forward-looking statements include the following:
intend | believe | plan | expect | may | goal | would | project |
become | pursue | estimate | will | forecast | continue | could | anticipate |
target | impact | promise | improve | progress | potential | should | encourage |
This is not an exhaustive list but is intended to give you an idea of how we try to identify forward-looking statements. The absence of any of these words, however, does not mean that the statement is not forward-looking.
Here is the key point: Forward-looking statements are not guarantees of future performance, and our actual results could differ materially from those set forth in any forward-looking statements. Any number of factors, many of which are beyond our control, could cause our performance to differ significantly from what is described in the forward-lookingstatements. These factors include, but are not limited to: the impact of contagious diseases such as the COVID-19pandemic and the societal, governmental, and individual responses thereto, including supply chain disruptions, loss of contracts and/or customers, erosion of some customers' credit quality, downgrades of the Company's credit quality, closure or temporary interruption of the Company's or suppliers' manufacturing facilities, travel, shipping and logistical disruptions, loss of human capital or personnel, and general economic calamities; the outcome of any legal proceedings that may be instituted against the Company, or any companies we may acquire; risks that the integration of Milacron or any other integration, acquisition, or disposition activity disrupts current operations or poses potential difficulties in employee retention or otherwise affects financial or operating results; the ability to recognize the benefits of the acquisition of Milacron or any other acquisition or disposition, including potential synergies and cost savings or the failure of the Company or any acquired company to achieve its plans and objectives generally; global market and economic conditions, including those related to the credit markets; volatility of our investment portfolio; adverse foreign currency fluctuations; involvement in claims, lawsuits and governmental proceedings related to operations; our reliance upon employees, agents, and business partners to comply with laws in many countries and jurisdictions; labor disruptions; the impact of the additional indebtedness that the Company has incurred in connection with the acquisition of Milacron and the ability of the Company to comply with financial or other covenants in its debt agreements or meet its de-leveraginggoals; the dependence of our business units on relationships with several large providers; increased costs or unavailability of raw materials or certain outsourced services; continued fluctuations in mortality rates and increased cremations; competition in the industries in which we operate, including from nontraditional sources in the death care industry; our level of international sales and operations; cyclical demand for industrial capital goods; impacts of decreases in demand or changes in technological advances, laws, or regulation on the revenues that we derive from the plastics industry; certain tax-relatedmatters; and changes to legislation, regulation, treaties or government policy, including any resulting from the current political environment. For a more in-depthdiscussion of these and other factors that could cause actual results to differ from those contained in forward-lookingstatements, see the discussions under the heading "Risk Factors" in Part I, Item 1A of Hillenbrand's Form 10-Kfor the year ended September 30, 2020, filed with the Securities and Exchange Commission ("SEC") on November 12, 2020, and in Part II, Item 1A of Hillenbrand's Form 10-Qfor the quarter ended March 31, 2020, filed with the SEC on May 4, 2021. The forward-lookinginformation in this presentation speaks only as of the date covered by this report, and we assume no obligation to update or revise any forward-lookinginformation.
EARNINGS PRESENTATION | 3
Hillenbrand Snapshot1 (NYSE: HI)
Global Diversified Industrial Company that Engineers, Manufactures, and Sells Products and Services into a Variety of End Markets
Pro Forma Revenue by Segment4 | Pro Forma Revenue by Geography4,6 | ||||
Founding Year | 1906 | ||||
Headquarters | Batesville, IN | 22% | 28% | ||
Employees2 | ~11,000 | 47% | |||
Locations2,3 | 54% | ||||
40+ | |||||
31% | 18% | ||||
PF Revenue4,5 | $2.5B | ||||
Advanced Process Solutions (APS) | |||||
PF Adj. EBITDA Margin4,5 | 17.9% | ||||
Molding Technology Solutions (MTS) | Americas EMEA Asia | ||||
Batesville | |||||
Plastics
31%
Diversified End Markets4
Chemicals | |||
Custom | Automotive | Consumer | 4% |
Molders | 5% | Goods | |
Packaging | |||
5% | 5% | ||
4% | |||
Food/ Pharma 3% | Electronics 3% | Medical |
3% | ||
Other |
Construction | 12% |
3% |
Death Care
22%
1 All financial metrics exclude the divested Cimcool, Red Valve and ABEL businesses. 2As of 9/30/2020. 3 Includes headquarters, significant manufacturing and sales & technical locations. 4 Represents total of Hillenbrand financial data for FYE 9/30/2020 as if Milacron were acquired on October 1,
2019. 5 Pro Forma Revenue and Adjusted EBITDA margin are non-GAAP measures See appendix for GAAP reconciliation. 6 Based on customer location.
Four Pillar Strategy Driving Continued Strong Results in Q2 2021
Strengthen and Build | Leverage | Build Scalable Foundation | Effectively | |||||||||
Platforms Organically and | Batesville | Utilizing Hillenbrand | Deploy Strong | |||||||||
through M&A | for Cash | Operating Model (HOM) | Free Cash Flow | |||||||||
Emerging capabilities in products | Complements APS and MTS | Opportunity to roll out HOM across | Increasing investments to capture | |||||||||
and recycling | businesses with stable cash flow | Molding Technology Solutions | demand growth | |||||||||
segment | ||||||||||||
Q2 HIGHLIGHTS
- Strong demand environment with double-digit revenue growth of 11%
- Exceptional operating cash flow of $193M compared to $28M in prior year quarter; net leverage ratio down to 1.7x
- Completed sale of ABEL, resulting in cash proceeds of $106M; paid down $182M debt in the quarter and completed long-term $350M financing action
- Backlog increased 34%1 year over year to record $1.52B
Hillenbrand Team Focused on Continued Solid Execution to Drive Long-Term Shareholder Value
1 Represents pro forma backlog growth. Backlog is a non-GAAP measure. See appendix for further information. | EARNINGS PRESENTATION | 5 |
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Hillenbrand Inc. published this content on 05 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 May 2021 12:18:07 UTC.