Investor Meeting 2024

Jeff Miller

Vice President Investor Relations


Forward-Looking Statements and Non-GAAP Financial Measures

Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as "anticipates," "believes," "may," "should," "could," "expects," "targets," "is likely," "will," or the negative of these terms and similar expressions, and include all statements regarding future performance, earnings projections, events or developments. Neither Parker nor any of its respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance and earnings projections of the company, including its individual segments, may differ materially from past performance or current expectations. A change in the economic conditions in individual markets may have a particularly volatile effect on segment performance.

Among other factors which may affect future performance are: changes in business relationships with and purchases by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms or significant changes in financial condition, changes in contract cost and revenue estimates for new development programs and changes in product mix; the impact of political, social and economic instability and disruptions; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the integration of Meggitt PLC; our ability to effectively manage expanded operations from acquisitions; the ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination to undertake business realignment activities and the expected costs thereof and, if undertaken, the ability to complete such activities and realize the anticipated cost savings from such activities; ability to implement successfully capital allocation initiatives, including timing, pricing and execution of share repurchases; availability, limitations or cost increases of raw materials, component products and/or commodities that cannot be recovered in product pricing; global economic factors, including manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and general economic conditions such as inflation, deflation, interest rates, credit availability and changes in consumer habits and preferences; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and changes; additional liabilities relating to changes in tax rates or exposure to additional income tax liabilities; ability to enter into, own, renew, protect and maintain intellectual property and know-how; leverage and future debt service obligations; potential impairment of goodwill; compliance costs associated with environmental laws and regulations; potential labor disruptions or shortages and the ability to attract and retain key personnel; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; global competitive market conditions, including U.S. trade policies and resulting effects on sales and pricing; local and global political and economic conditions, including the Russia-Ukraine war and other armed conflicts and their residual effects; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; government actions and natural phenomena such as pandemics, floods, earthquakes, hurricanes or other natural phenomena that may be related to climate change; increased cyber security threats and sophisticated computer crime; and success of business and operating initiatives. Readers should consider these forward-looking statements in light of risk factors discussed in Parker's Annual Report on Form 10-K for the fiscal year ended June 30, 2023 and other periodic filings made with the SEC.

This presentation contains references to non-GAAP financial information including organic sales, adjusted earnings per share, adjusted segment operating margin for Parker and by segment, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, Net Debt to Adjusted EBITDA, free cash flow and free cash flow margin. As used in this presentation, EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before business realignment, integration costs to achieve, acquisition related expenses, and other one-time items. Free cash flow is defined as cash flow from operations less capital expenditures. Although organic sales, adjusted earnings per share, adjusted segment operating margin for Parker and by segment, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, Net Debt to Adjusted EBITDA, free cash flow and free cash flow margin are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the company performance for the periods presented. Detailed reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures have been included in the appendix to this presentation, except for the non-GAAP metrics included in our new 5-year targets for fiscal year 2029, which reconciliations could not be provided without unreasonable effort.

Please visit investors.parker.com for more information.


Today's Presenters

Strong Continuity & Seasoned Leadership Team

Jenny Parmentier

Andy Ross

Todd Leombruno

Jeff Miller

Chairman & Chief

President & Chief

Executive Vice

Vice President

Executive Officer

Operating Officer

President &

Investor Relations

Chief Financial Officer


Today's Program


Jeff Miller, Vice President Investor Relations

Transforming the Company

Jenny Parmentier, Chairman & Chief Executive Officer

Positioned for Growth from Secular Trends

Jenny Parmentier, Chairman & Chief Executive Officer

Operational Excellence

Andy Ross, President & Chief Operating Officer

Financial Performance

Todd Leombruno, EVP & Chief Financial Officer

Closing Comments

Jenny Parmentier, Chairman & Chief Executive Officer


Open Discussion

Parker Management Team


Transforming the Company

Jenny Parmentier

Chairman & CEO


Key Messages Today





for Growth



FY29 Targets

Interconnected technologies

The Win Strategy drives top

Manufacturing excellence

Raising long-term targets on

enabling advancement of

quartile performance in all of

creates growth and margin

strength of our people, strategy

secular growth trends

our businesses

expansion opportunities

and culture


What Drives Parker

Safety, Engagement, Ownership

Living up to Our Purpose

Top Quartile Performance

Great Generators & Deployers of Cash


Parker Hannifin at-a-Glance

Engineering Customer Success in Motion & Control Industry for over 100 years

~$20B FY24G Revenue



Motion Systems











Flow & Process





North America




Filtration &




The Win Strategy

A technology powerhouse of

Global distribution

Decentralized operating

Interconnected Solutions




#1 Position in Motion & Control Industry

> 90% of Revenue Comes from 6 Market Verticals

~$145B Market Size


Other 5%

Energy 8%

Aerospace &

Defense 33%


Off-Highway 15%


In-plant & Industrial

Transportation 15%

Equipment 20%

  • Interconnected technologies and solutions across market verticals
  • Growth focused on faster growing, longer cycle markets and secular trends

Note: Aerospace & Defense market includes revenue reported both in the Aerospace systems segment and diversified industrial segment. .



  • Original Link
  • Original Document
  • Permalink


Parker Hannifin Corporation published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 21:22:18 UTC.