Hubbell Incorporated : 2Q 2021 Earnings Call Presentation

Second Quarter 2021 Earnings Call

July 27, 2021

Forward Looking Statements and Non-GAAP Measures

Forward Looking Statements

Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements about expectations regarding our financial results, condition and outlook, anticipated end markets, near-term volume, continued opportunity for operational improvement, our ability to drive consistent and differentiated performance, the impact of our high quality portfolio of electrical solutions and utility solutions with strong brand value and best in class reliability, and anticipated effects of the COVID-19 pandemic and the responses thereto, including the pandemic's impact on general economic and market conditions, as well as on our business, customers, end markets, results of operations and financial condition and anticipated actions to be taken by management in response to the pandemic and related governmental and business actions, and our projected financial results set forth in "2021 Outlook" below, as well as other statements that are not strictly historic in nature. In addition, all statements regarding anticipated growth, changes in operating results, market conditions and economic conditions are forward-looking, including those regarding the adverse impact of the COVID-19 pandemic on the Company's end markets. These statements may be identified by the use of forward-looking words or phrases such as "believe", "expect", "anticipate", "plan", "estimated", "target", "should", "could", "may", "subject to", "continues", "growing", "projected", "if", "potential", "will likely be", and similar words and phrases. Such forward-looking statements are based on our current expectations and involve numerous assumptions, known and unknown risks, uncertainties and other factors which may cause actual and future performance or the Company's achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: Availability, costs and quantity of raw materials, purchased components, energy and freight, particularly as global economic activity recovers from the effects of the COVID-19 pandemic; the scope, duration or resurgence of the COVID-19 pandemic and its impact on global economic systems, our employees, sites, operations, customers, and supply chain; the outcome of contingencies or costs compared to amounts provided for such contingencies, including those with respect to pension withdrawal liabilities; achieving sales levels to meet revenue expectations; unexpected costs or charges, certain of which may be outside the Company's control; the effects of tariffs and other trade actions taken by the U.S. and other countries; changes in demand for our products, as well as product sales prices and material costs; expected benefits of productivity improvements and cost reduction actions; effects of unfavorable foreign currency exchange rates; the impact of U.S. tax reform and other legislation; general economic and business conditions; the impact of and the ability to complete and integrate strategic acquisitions; the impact of certain divestitures; the ability to effectively develop and introduce new products, expand into new markets and deploy capital; and other factors described in our Securities and Exchange Commission filings, including the "Business", "Risk Factors", and "Quantitative and Qualitative Disclosures about Market Risk" Sections in the Annual Report on Form 10-K for the year ended December 31, 2020 and Quarterly Reports on Form 10-Q.

Non-GAAP Measures

Certain terms used in this presentation, including "Net debt", "Free Cash Flow", "Organic net sales", "Organic growth", "Restructuring-related costs", "EBITDA", and certain "adjusted" measures, are defined under the section entitled "Non-GAAP Definitions." See Appendix, our press releases and SEC filings for more information.

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Key Messages

1 Broad-based recovery across Electrical and Utility markets

2	Strong Electrical Solutions operational execution

3	Actively mitigating material and supply chain inflation with price and productivity

4 Raising 2021 adjusted EPS guidance

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2Q 2021 Results

$1.19B

Sales

(Organic +21% M&A +4%)

14.5%

Adj. OP Margin

(-130bps y/y)

$2.36

Adj. Diluted EPS

$131M

Free Cash Flow

▪Significant y/y volume growth across Electrical and Utility markets ▪Strong price realization in both segments

▪Material and supply chain inflation, non-repeat of temporary cost savings, and unfavorable mix ▪Higher volumes, strong price realization and restructuring/productivity benefits

▪Favorable tax rate and lower interest expense

▪Working capital investment to serve strong customer demand

▪1H Free Cash Flow generation ahead of 2019 levels and consistent with full year expectations

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2Q 2021 Results

		NET SALES				ADJUSTED OPERATING PROFIT
$ millions		+26%	1,192		$ millions		+15%
						173
							14.5%
	949
				150
						15.8%

2Q 20202Q 20212Q 20202Q 2021

		ADJUSTED DILUTED EPS				FREE CASH FLOW
$ per share		+26%			$ millions		-26%
		$2.36			178
						131
	$1.87

2Q 2020

2Q 2021

2Q 2020

2Q 2021

Strong Revenue and Earnings Growth

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