#1GENERAC INVESTOR PRESENTATION NOVEMBER 2020 "Generac's mission is to ensure peace of mind by developing power products and solutions that make the world safer, brighter, and more productive." GENERAC 40#2INVESTOR RELATIONS Aaron Jagdfeld PRESIDENT & CEO York Ragen CHIEF FINANCIAL OFFICER Mike Harris VICE PRESIDENT - CORPORATE DEVELOPMENT & INVESTOR RELATIONS (262) 506-6064 Investor [email protected] GENERAC#3FORWARD LOOKING STATEMENTS GENERAC Certain statements contained in this news release, as well as other information provided from time to time by Generac Holdings Inc. or its employees, may contain forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Forward-looking statements give Generac's current expectations and projections relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "forecast,” “project,” “plan,” “intend," "believe," "confident," "may," "should," "can have," "likely," "future," "optimistic" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Any such forward looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. Although Generac believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Generac's actual financial results and cause them to differ materially from those anticipated in any forward- looking statements, including: • frequency and duration of power outages impacting demand for our products; • availability, cost and quality of raw materials and key components from our global supply chain and labor needed in producing our products; . • the impact on our results of possible fluctuations in interest rates, foreign currency exchange rates, commodities, product mix and regulatory tariffs; the possibility that the expected synergies, efficiencies and cost savings of our acquisitions will not be realized, or will not be realized within the expected time period; the risk that our acquisitions will not be integrated successfully; . difficulties we may encounter as our business expands globally or into new markets; • our dependence on our distribution network; . • • our ability to invest in, develop or adapt to changing technologies and manufacturing techniques; loss of our key management and employees; increase in product and other liability claims or recalls; failures or security breaches of our networks or information technology systems; • changes in environmental, health and safety, or product compliance laws and regulations affecting our products or operations; and the duration and scope of the impacts of the COVID-19 pandemic are uncertain and may or will continue to adversely affect our operations, supply chain, distribution, and demand for certain of our products and services. Should one or more of these risks or uncertainties materialize, Generac's actual results may vary in material respects from those projected in any forward-looking statements. In the current environment, some of the above factors have materialized and may or will continue to be impacted by the COVID-19 pandemic, which may cause actual results to vary from these forward-looking statements. A detailed discussion of these and other factors that may affect future results is contained in Generac's filings with the U.S. Securities and Exchange Commission ("SEC"), particularly in the Risk Factors section of the 2019 Annual Report on Form 10-K and in its periodic reports on Form 10-Q. Stockholders, potential investors and other readers should consider these factors carefully in evaluating the forward-looking statements. Any forward-looking statement made by Generac in this presentation speaks only as of the date on which it is made. Generac undertakes no obligation to update any forward- looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. 3#4GENERAC BY THE NUMBERS GENERAC 2020E NET SALES $2.4-$2.5 BILLION -6,500 EMPLOYEES DOING BUSINESS IN OVER 150 COUNTRIES RESIDENTIAL LTM ADJ EBITDA $517 MILLION 22.3% MARGIN 51% COMMERCIAL & INDUSTRIAL 41% OVER 500 ENGINEERS WORLDWIDE LTM FREE CASH FLOW ~$400 MILLION OTHER 8% OMNI CHANNEL DISTRIBUTION THOUSANDS OF DEALERS, WHOLESALERS, RETAILERS AND E-COMMERCE PARTNERS 4#5MEGA TRENDS "Grid 2.0" - Evolution of the traditional electrical utility model Technology & regulation will create Clean Energy and Grid Services opportunities Legacy infrastructure needs major investment cycle Rebuilding of transportation, water & power will take decades Attitudes around global warming and climate change are changing Expectation of more severe weather driving power outages Telecommunications infrastructure shifting to next generation 5G will enable new technologies requiring significant improvement in network uptime Natural Gas will be the fuel of the future Huge supply & increasing demand for applications beyond standby power New Emerging Trend... Home as a Sanctuary Millions of people working, learning, shopping, entertaining, and in general, spending more time at home GENERAC GENERAC 5#6MACRO INVESTMENT THEMES 10% ORGANIC CAGR SINCE IPO IN 2010 سل CREATING A LEADING "ENERGY TECHNOLOGY SOLUTIONS" COMPANY $2,500 $2,000 $1,500 $1,000 $500 Power Quality Issues Continue To Increase - Power outage severity increasing significantly over LT baseline average during 2017-2020 - Aging and under-invested electrical grid more vulnerable to unpredictable and severe weather -Aging population and overall consumers are more dependent on power Home Standby Market Growth Opportunity is Massive - ~5.0% of US HH's have a HSB today (TAM-53M HH's) - Every 1.0% of penetration is approximately $2.5 billion market opportunity (at retail) - Generac's 75%+ share due to unique go to market strategy California market for backup power increasing significantly - Local utilities triggering numerous and significant power shutoff events -Shutoff events impacting millions of customers in an attempt to mitigate risk of wildfires - Events projected to continue for several years with HSB penetration only ~1% Energy Storage & Monitoring Markets Developing Quickly - New markets focused on energy cost reduction - Battery cost and performance continue to improve Generac uniquely positioned with distribution, marketing & brand Natural Gas Generators Driving Superior Growth Rates Cleaner, greener & more cost effective for on-site power - US is -40% gas gen sales annually and growing 2x diesel - Global opportunity is nascent - less than 1% of market Rollout of 5G Will Require Improved Network Reliability - 5G will enable many new technologies - uptime critical - ~400K cell towers in U.S., ~40% penetration, Generac #1 market share - Technology to rollout globally - Generac footprint can serve $- '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20E Note: $ amounts in millions. Represents gross sales excluding freight revenue. Excludes "Portable Product" sales prior to the division's divestiture in 1998. Figures include results from acquisitions completed during 2011-present; see slide titled "Summary of Acquisitions" for further details. 6#7GENERAC WORLDWIDE LOCATIONS Wisconsin, USA Generac Eagle Janesville Jefferson Oshkosh Waukesha (HQ) Whitewater Generac Mobile Products Berlin California, USA Energy Systems GENERAC Vancouver, BC Neurio Enbala Vermont, USA Country Home Products Maine, USA Pika Energy United Kingdom Pramac UK France Pramac France Germany Motortech Pramac GMBH Poland Pramac SP. ZOO Motortech Vertically Integrated Manufacturing Capacity Serving a Globally Diverse Commercial Footprint Spain Pramac Iberica Ohio, USA Mean Green Italy Colorado, USA Enbala Italy Pramac Industrial Generac Mobile Products Dominican Republic Mexico Pramac Caribbean Ottomotores Selmec Brasil Generac Pramac Brasil Russia Pramac Russia Romania Pramac Generators Kolkata, India China Captiva United Arab Emirates Pramac Middle East Pramac Fu Lee Foshan Power Equipment Singapore Pramac Asia Australia Pramac Australia 7#8LEGACY POWER PLATFORMS BERAS GENERAC GENERAC Consumer Power Products Air-cooled Home Standby Generators Liquid-cooled Home Standby Generators Portable & Inverter Generators Prime and emergency backup for: - Residential - Light Commercial Construction Recreation Outdoor Chore Products Pressure washers Water pumps Field & brush mowers Trimmer mowers Chippers & shredders Log splitters Lawn & leaf vacuums Stump grinders Wide variety of property maintenance applications for: Residential - Larger-acreage properties - Light commercial - Municipal - Farm C&I Stationary Products Larger kW & Container Gensets Prime and emergency backup for: - Healthcare - Telecom/Data Centers Industrial Stationary - Municipal - Manufacturing Generators Commercial Stationary Generators Complete lines of diesel & natural gas generators - Distribution - Hospitality - Restaurants - Retail Mobile Power Products Light Towers Mobile Generators Heaters & Pumps GENERAC Support equipment for: - Construction - Oil and Gas - Mining - Special Events Road Development General Rental needs 8#9LEGACY GROWTH DRIVERS GENERAC GENERAC INDUSTRIAL Consumer Power Products Key drivers: Aging and under-invested grid, favorable demographics, heightened power outages Low penetration of emerging HSB category: ~4.75% of addressable households within the U.S. Market leader: Leading share of domestic HSB market; With significant competitive advantages high-20% share of portable generator market Key strategic initiatives: Further improve lead generation, close rates and reduce total system cost Connectivity: Driving deeper engagement with customers and distribution partners C&I Stationary Products Natural gas generators: Gaining share vs. diesel Market share gains: Larger-kW product offering, distribution optimization, sales process excellence International Expansion: Acquisitions accelerate expansion into other regions of the world New Market Opportunities: Expansion of gaseous-fueled products into prime, continuous and CHP applications Low penetration: Within the light commercial/retail market Telecom: Growing importance of backup power for critical telecommunications infrastructure Outdoor Chore Products Housing drives market growth: Need for outdoor power equipment grows alongside housing starts Trend toward pro market: Capitalize on growing trend in lawn and garden industry of “do it for me" with products for the pro market Leverage current D2C customer base: Introducing new products to capture more share of wallet Expand distribution: Products for outdoor power equipment dealers and other B2B partners Supply Chain and Operational Synergies: Leverage air-cooled engine volumes and consolidated manufacturing footprint to improve cost position. Mobile Power Products Secular shift toward renting: Mobile products platform benefiting from shift toward renting in lieu of buying Diversification into new products: Entry into adjacent "engine- powered" rental equipment categories, both organically and through acquisitions Long-term increased infrastructure spending: Macro opportunity of increased spending stimulus to improve aging domestic infrastructure Long-term domestic energy production: Multi-decade upcycle for mobile support equipment that is essential to oil & gas drilling and production sites#10ENERGY TECHNOLOGY - GENERAC'S ENERGY STORAGE SOLUTION GENERAC MORE POWER - 9/11 kW Max. Continuous - 50A Motor Starting Current MORE CAPACITY - 3.0 kWh Battery Modules - 9-18 kWh per Cabinet LOAD MANAGEMENT - 50A and 100A Automatic Smart Management Modules GENERAC PWRIBED GENERAD GENERAC PWR CELL OUTDOOR RATED - Type 3R Battery Cabinet -10 to 50°C Operating Temperature Range GENERAÇ PWR WHOLE HOME BACKUP - 200 A and 100A Whole Home Transfer Switches PWRcell Whole Home Backup... CLEAN & SIMPLE 10#11WHOLE HOME POWER COMPARISON Power/Energy (kW/kWh) 20 15 10 5 0 +56% +33% PWRcell +80% Peak Current PWRcell 50A Tesla 32 Useable Energy 18kWh 13.5kWh Continuous Power 9kW 5kW Tesla GENERAC PEAK CURRENT USEABLE ENERGY CONTINUOUS POWER 50 LG Chem LG Chem 31 Enphase 25 9.3kWh 5kW 40 40 30 30 20 20 10 10 0 10.1kWh Enphase Note: Shaded lines represent market leading advantage in terms of power capability, with specific percentages as compared to Tesla 3.8kW Peak Current 11#12ENERGY TECHNOLOGY GENERAC'S "GRID 2.0" OPPORTUNITY GENERAC EVOLUTION OF TRADITIONAL ELECTRICAL UTILITY MODEL: migration toward DERs to respond to real-time energy balancing needs UTILITIES/ENERGY RETAILERS EXPERIENCING HIGHER SUPPLY VARIABILITY AND NEED MORE RESILIENCY: due to increasing use of renewables and higher power outages ISO/Utility Avoided cost of buying power on the spot market and/or upgrading generation, transmission and distribution systems. Enables Grid Operators To Run A Cleaner, Less Expensive And More Resilient Electrical Grid ENBALA'S CONCERTOTM CLOUD-BASED SOFTWARE - OPEN PLATFORM, BOTH BRAND AND EQUIPMENT AGNOSTIC: capability to connect to wide range of DERS Software Platform Enables the connection of DERS to register and then participate in Energy Aggregator & Utility programs. enbala A Generac Company DER ASSETS AGGREGATED INTO A DECENTRALIZED/ VIRTUAL POWER NETWORK: provide flexible capacity to address peaks in electricity supply/demand FERC 2222 RULING EXPECTED TO ACCELERATE CONNECTION OF NEW AND EXISTING INSTALLED BASE OF DERS: providing increased ROI value proposition Generac DER Assets Customer receives incentive to allow use of onsite asset - incentive improves ROI value proposition to acquire asset. GENERAC Load PV+Storage Control Residential Generator C&I Generator 12#13ENBALA'S REVENUE MODEL GENERAC Current SaaS Model - $/MW Assets Connected/year Fundamentally a Software-as-a-Service business Enbala is paid as assets/devices are connected to the platform on a recurring basis Current Performance Model - $/MW Delivered/year • Fundamentally a pay-for-performance business • Enbala is paid by utilities for the energy performance delivered UTILITY/ENERGY RETAILERS enbala A Generac Company UTILITY/ENERGY RETAILERS ↑↓ enbala A Generac Company CUSTOMER 1 CUSTOMER 2 CUSTOMER X CUSTOMER 1 CUSTOMER 2 CUSTOMER X enbala A Generac Company Enbala Opportunities: Energy imbalance markets • Real time capacity markets • Predictive energy management for customers . Emerging wholesale markets from FERC Order 2222 • Ancillary Service, Frequency Control and other aggregation markets 13#14GLOBAL DISTRIBUTION CHANNELS Other Key Channels Locke SUPPLY CO. COSTCO WHOLESALE REXEL Electrical & Datacom Products sonepar LEROY LOWE'S Let's Build Something Together" MERLIN Walmart MENARDS® BUNNINGS warehouse CANADIAN TIRE BRICOMAN PU PROFESSIONALE MENO CARO HOME 40420 Residential and C&I Dealer Network International network of over 7,000 dealers • Installation and after sale service support • Work with professional engineering firms to develop customized solutions • Over 5,000 technicians trained every year . O Support for global large account sales Significant Omni-Channel Distribution Electrical Wholesalers KAISER+KRAFT ELECTRIC GENERATORS DIRECT Mass Retailers amazon CRAFTSMAN. Honeywell DEWALT GUARANTEED TOUGH: BUNGHEINRICH PROFI GRAINGER SHOP FOR THE ONES WHO GET DONE Catalog and E-Commerce Speedy Auchan ooredoo GE Jenbacher TARGET gamy verizon bouygues at&t United Rentals SUNBELT HENTALE Direct to Global Accounts Licensing Partners POWER DR DONE RIGHT Direct to Consumer CED GREENTECH® POWERHOME SOLAR GENERAC® Sunnova™ Clean Energy 14#15ENTERPRISE STRATEGY Grow: Further expand market penetration for standby and clean energy solutions in North America while establishing traction for these products globally. GROW Residential Power Solutions GAIN Share & New Markets GENERAC Gain: We gain share by innovating and we expand our opportunity for growth by doing the hard work of pioneering new products and markets. Lead: Capitalize on the global growth of natural gas fuel as an available and affordable energy source. Leverage Generac's expertise in gaseous engines to expand applications beyond standby power. LEAD Gas Power Generation CONNECT Monitor & Manage Connect: By being connected to the devices we manufacture we will drive additional value to our customers and our partners over the product life-cycle. POWERING OUR FUTURE 15#16FINANCIAL SUMMARY Total Net Sales Gross Margin % 60.0% $2,315.0 $2,204.3 $500 $2,200 $2,023.5 50.0% Adjusted EBITDA Adjusted EBITDA margin % $517.1 $454.1 47.5% $424.6 $1,679.4 $400 37.5% $1,600 $1,447.7 $317.3 40.0% $300 $278.4 27.5% 38.0% $1,000 35.8% 35.8% 36.2% 34.8% 30.0% $200 22.3% 21.0% 20.6% 17.5% 19.3% 19.0% $400 20.0% $100 7.5% 2016 2017 2018 2019 LTM 2016 2017 2018 2019 LTM Free Cash Flow Consolidated Gross Debt Consolidated Gross Debt Leverage Ratio $396.7 $400 $350 $1,200 $1,000 5.0x $1,052.9 $928.7 $924.0 $898.9 $889.6 $300 $250.7 4.0x $250 $222.9 $227.9 $800 $203.6 $200 $600 3.0x 3.3x $150 $400 $100 2.0x $200 2.2x 2.2x $50 2.0x 1.7x $0 $0 1.0x 2016 2017 2018 2019 LTM 2016 2017 2018 2019 LTM Note: Adjusted EBITDA margin calculated using adjusted EBITDA before deducting for non-controlling interest. GENERAC 16#17CAPITAL DEPLOYMENT PRIORITIES 1 23 2017-2019 $ Organic Growth I Invest in technology, innovation, and R&D capabilities Asset Lite ~150m I Capacity expansion; Global systems; High ROI automation I Target 2-3x leverage Pay Down I Term Loan matures 2026, ABL matures 2023 Debt I $500mm notional swapped fixed Deleveraging Story ~200m GENERAC I Demonstrated ability to execute; 17 deals since 2011 M&A I Accelerates "Powering Our Future" strategic plan Accelerate the strategy ~200m I Seek high synergy opportunities with above WACC returns 4 Return of Capital I As future cash flow permits, will evaluate options opportunistically I $250mm remaining on current share repurchase authorization Opportunistic ~50m Strong balance sheet and cash flow generation enables disciplined and balanced approach toward capital deployment that creates value for shareholders TOTAL ~600m 17#18APPENDIX GENERAC 18#192020 BUSINESS OUTLOOK (AS REPORTED ON OCTOBER 28, 2020) GENERAC Consolidated net sales Consolidated revenue: increase between 10% to 12% Residential products: significant year-over-year growth • C&I products: down significantly vs. prior year . • Core revenue growth over 10% Adjusted EBITDA margins • Between 22.5% to 23.0% Cash income tax rate • Approximately 16.0% . Free cash flow Conversion of adjusted net income of approximately 90% 1848 90 EG Expect to Utilize Strong Free Cash Flow Generation to Increase Shareholder Value 19#20EXPANDING POWER OUTAGE SEVERITY(1) Total Outage Hours (Severity) -Legacy Residential Organic Sales - LTM Q1 Q2 Q3 2010 GENERAC (1) Represents power outage hours for mainland U.S. only 04 Q4 Q1 Q2 Q3 Q4 Q1 2011 Q2 2012 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 Q3 Q4 Q1 Q2 Q3 2017 Q4 Q1 Q2 Q3 2018 Q4 Q1 Q2 Q3 Q4 2019 Q1 Q2 Q3 2020 Elevated Baseline Outages + Major Event = Catalysts for Growth 20 20#21SUMMARY OF ACQUISITIONS GENERAC MAGNUM OCT. AUG. 2011 Country Home neurio 2015 MAR. 2019 PRODUCTS Magnum Products is a leading manufacturer of high-quality light towers, and mobile generators. Berlin, WI Expands chore-related products line-up and provides additional scale to the residential engine- powered tools platform Vergennes, VT The leading energy data company focused on metering technology and sophisticated analytics to optimize energy use Vancouver, BC DEC. ottomotores 2012 PRAMAC MAR. 2016 Pika APR. ENERGY 2019 GROUP Leading manufacturer of industrial power generation equipment in Mexico and other parts of Latin America. Mexico City, Mexico Stationary, mobile and portable generators sold into over 150 countries worldwide Siena, Italy Leading manufacturer of smart storage solutions and smart batteries JAN. T TOWER 88 AUG. 2013 MOTORTECH® MEANGREEN 2017 LIGHT Mobile light towers for EMEA and other international markets Milan, Italy Gaseous-engine control systems and accessories sold to engine OEMs and aftermarket customers Celle, Germany MOWERS Leading manufacturer of an innovative commercial line of battery powered turf care products Portland, MN SEP. 2020 Cost synergies Acquisitions used to accelerate Powering Our Future strategy Revenue synergies New products, customers, end markets Numerous cross-selling opportunities Geographic and international expansion BALDOR Expands domestic offering of standby and prime- duty gensets up to 2.5 MW NOV. 2013 Selmec JUN. 2018 enbala YOUR GRID. IN BALANCE. Ross, OH OCT. 2020 Strategic global sourcing initiatives Innovation and cost-reduction engineering Adopt Generac's lean cost culture Operational excellence focus Oshkosh, WI Larger kW and container gensets; service and remote monitoring platform for Latin America market Mexico City, Mexico Leading provider of distributed energy optimization and control software for the electrical grid Denver, CO MAC OCT. 2014 CAPTIVA ENERGY SOLUTIONS FEB. 2019 Smaller acquisitions of Gen-Tran completed in February 2012 (manual transfer switches for portable generators -Alpharetta, GA); Pramac America in September 2017 (portable generators - Marietta, GA); Energy Systems in July 2020 (industrial distributor - Stockton, CA) MAC is a leading manufacturer of premium-grade commercial and industrial mobile heaters within the U.S. and Canada. Bismarck, ND Captiva Energy Solutions, founded in 2010 and headquartered in Kolkata, India specializes in customized industrial generators. Kolkata, India 21 221#22FAVORABLE TAX ATTRIBUTES Tax attributes and 338(h)10 election overview $1.9 billion combined asset basis step-up created through 2006 acquisition of Generac and other acquisitions • Each amortizes over 15 years • Reduces cash tax obligation on average by ~$33 million per year through 2021 ($ MM) TOTAL 2020 2021 Annual tax amortization $264 $130 $107 2022+ $27 Cash tax savings (1) $67 $33 $27 $7 (1) Assuming continued profitability and no limitations at an assumed 25.5% federal and state tax rate. (2) Based on annual discount rate of between 5 and 10% 4 GENERAC . . . . l l l l l l l l l l l l l l l l l l l l GENERAC INDUSTRIAL POWER GENERAC INDUSTRIAL POWER Results in present value tax savings of ~$60 million (2) or $.90-$1.00 per share 22#23NET SALES BY PRODUCT CLASS $1,000 $900 $800 $769 $700 $600 $558 $500 $400 $300 $200 $100 $0 2016 RESIDENTIAL $120 $870 $684 2017 $125 COMMERCIAL & INDUSTRIAL OTHER $1,043 $820 2018 $160 $1,144 $872 2019 $1,380 GENERAC $720 $214 $189 LTM Figures include results from acquisitions completed during 2011 - 2020; see slide titled "Summary of Acquisitions" for further details. 23#24% of US Addressable Market HSB: A PENETRATION STORY North American Penetration Opportunity(1) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 90 1945 1955 1965 1975 1985 1995 2005 2013 2019 GENERAC 86.1% 25.0% Aging Population Fits Demographic • ~70% of buyers age 50 and older • ~Median home value of approximately $400k • ~80% retro-fit application • ~$120K median household income • ~8% replacement units 15.0% 4.7% Every 1% of increased penetration equals ~$2.5 billion of market opportunity (1) Source: Company estimates; based on addressable market for HSB generators consisting of all single-family detached, owner-occupied homes valued > $125K; portables and central A/C use all single-family homes regardless of value; penetration rate for home security alarms was estimated from a variety of industry sources and focuses on the professionally monitored market. 24#25WHOLE HOME POWER SCALABLE MODULAR APPROACH GENERAC PWR CELL OR SPACER SPACER OR OR # of Modules 6 Old Capacity (kWh) 17.1 5 4 14.3 11.4 3 8.6 New Capacity (kWh) 18 15 12 9 GENERAC 25#26RAPIDLY BUILDING CLEAN ENERGY DISTRIBUTION NATIONAL REGIONAL sunnova momentum SOLAR ❤infinity energy Trinity SOLAR BAKER ELECTRIC HOME ENERGY SOLAR MMUXIE AMERICA'S SOLAR COMPANY HEATING & AIR SMART HOME EHS Efficient Home Services LONG TAIL CED GREENTECH® Soligent BayWa r.e. WESCO Gexpro windmar SOLAR REVOLU SUN. cleaner, smarter. solar. TITAN SOLAR POWER Suntuity SOLAR POWERHOME. SOLAR Krannich global solar distribution INTER ISLAND SOLAR SUPPLY sonepar usa GENERAC 26#27Q3 2020 & LTM FINANCIAL OVERVIEW Actual Q3 2020 (unaudited) Y/Y % Change Actual LTM (unaudited) Y/Y % Change Residential $458.9 37.0% $1,380.3 23.8% Industrial 176.2 (18.0%) 720.3 (17.9%) Other 66.3 29.4% 214.4 16.5% Net Sales $701.4 16.7% $2,315.0 6.4% Gross Profit $276.1 27.0% 879.7 12.8% % Margin 39.4% 38.0% Adjusted EBITDA $178.8 41.9% $517.1 14.6% % Margin (1) 25.5% 22.3% Net Income GHI (2) - $115.0 52.1% $295.2 14.4% Adjusted Net Income - GHI $132.9 47.7% $372.9 20.5% Adjusted EPS - GHI $2.08 45.4% $5.88 19.0% Free Cash Flow $148.3 47.1% $396.7 123.2% Consolidated Gross Debt $889.6 Consolidated Gross Debt Leverage Ratio 1.7x GENERAC (1) Adjusted EBITDA (margin) calculated using adjusted EBITDA before deducting for non-controlling interest. (2) LTM includes $11.5 million of pre-tax charges relating to restructuring costs and asset write-downs to address the impact of COVID-19 pandemic; LTM also includes a $10.9 million pre-tax charge related to the settlement of the Company's domestic pension plan. 27 22#28ADJUSTED EBITDA RECONCILIATION Net income Interest expense Depreciation and amortization Income taxes provision Non-cash write-down and other charges Non-cash share-based compensation expense Loss on extinguishment of debt (Gain) loss on change in contractual interest rate Transaction costs and credit facility fees Loss on pension settlement, restructuring and other Adjusted EBITDA Adjusted EBITDA attributable to noncontrolling interests Adjusted EBITDA attributable to Generac Holdings, Inc. 2016 2017 2018 2019 LTM $97.2 $159.6 $241.2 $252.3 $292.2 44.6 42.7 41.0 41.5 35.2 54.4 52.0 47.4 60.8 68.0 56.5 44.1 69.9 67.3 73.4 7.5 5.8 3.5 0.8 1.4 9.5 10.2 14.6 16.7 19.5 0.6 1.3 0.9 0.9 3.0 2.4 2.1 3.9 2.7 1.8 0.9 0.8 1.8 11.0 24.6 $276.5 $317.3 $424.6 $454.1 $517.1 (3.8) $272.7 (6.1) $311.2 (7.8) $416.8 (5.0) (2.2) $449.1 $514.9 GENERAC 28#29ADJUSTED EBITDA RECONCILIATION Net income to Adjusted EBITDA reconciliation Three months ended September 30, LTM Ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Net income attributable to Generac Holdings. Inc. Net income attributable to noncontrolling interests Net income Interest expense Depreciation and amortization Income taxes provision $114,970 $75,574 $295,189 $257,968 265 (677) (3,015) 1,101 115,235 74,897 292,174 259,069 8,096 10,704 35,197 41,445 17,168 15,494 68,013 55,125 32,050 20,064 73,390 73,862 Non-cash write-down and other charges 477 914 1,435 1,452 Non-cash share-based compensation expense 4,353 3,549 19,544 16,130 Loss on extinguishment of debt 926 Transaction costs and credit facility fees 568 358 1,837 3,470 Loss on pension settlement, restructuring and other 831 (27) 24,575 481 Adjusted EBITDA Adjusted EBITDA attributable to noncontrolling interests 178,778 (920) 125,953 517,091 451,034 Adjusted EBITDA attributable to Generac Holdings, Inc. $177,858 (909) $125,044 (2,193) $514,898 (5,848) $445,186 GENERAC 29 29#30ADJUSTED NET INCOME AND FREE CASH FLOW RECONCILIATIONS Net income to Adjusted net income reconciliation Three months ended September 30, LTM Ended September 30, 2020 2019 2020 2019 (unaudited) (unaudited) Net income attributable to Generac Holdings. Inc. Net income attributable to noncontrolling interests Net income Provision for income taxes $114,970 265 $75,574 (677) $295,189 $257,968 (3,015) 1,101 115,235 74,897 292,174 259,069 32,050 20,064 73,390 73,862 Income before provision for income taxes Amortization of intangible assets 147,285 94,961 365,564 332,931 7,892 7,406 31,985 25,319 Amortization of deferred financing costs and OID 654 1,221 3,055 4,792 Loss on extinguishment of debt 926 Transaction costs and credit facility fees 381 165 113 2,435 Loss on pension settlement, restructuring and other 531 567 24,186 1,011 Adjusted net income before provision for income taxes 156,743 104,320 425,829 366,488 Cash income tax expense (23,620) (15,083) (53,089) (55,053) Adjusted net income $133,123 $89,237 $372,740 $311,435 Adjusted net income attributable to noncontrolling interests Adjusted net income attributable to Generac Holdings. Inc. (198) $132,925 738 $89,975 195 (1,989) $372,935 $309,446 Free Cash Flow Reconciliation Net cash provided by operating activities "Proceeds from beneficial interests in securitization transactions" Expenditures for property and equipment Free cash flow $155,196 $111,188 $443,395 $242,031 674 (7,608) $148,262 640 (11,071) $100,757 2,592 (49,295) $396,692 3,144 (67,471) $177,704 GENERAC 30