#1GENERAC Generac's mission is to ensure peace of mind by developing power products and solutions that make the world safer, brighter and more productive. Investor Presentation SEPTEMBER 2020#22 GENERAC HOUR METER Investor Relations CONTACTS Aaron Jagdfeld PRESIDENT & CEO York Ragen CHIEF FINANCIAL OFFICER Mike Harris VICE PRESIDENT - CORPORATE DEVELOPMENT & INVESTOR RELATIONS (262) 506-6064 [email protected] GENERAC#3ENERAC 3 GENERAC POWER TO LIVE Forward Looking Statements 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. GENERAC#44 Generac By The Numbers 5,700 EMPLOYEES FY 2019 NET SALES ~$2.2 BILLION ADJ EBITDA ~21% 4.5 MILLION Sq. Feet of Manufacturing & Distribution Residential 51% Doing business in over 150 COUNTRIES GENERAC Commercial & Industrial 41% OMNI CHANNEL DISTRIBUTION Thousands of dealers, wholesalers, retailers and e-commerce partners Other 8% $251 MILLION FREE CASH FLOW FY 2019 OVER 500 ENGINEERS Worldwide#5ΟΙ 5 Mega Trends Disruption of the traditional electrical utility model - Technology & regulation will create Clean Energy opportunities Attitudes around global warming are changing - Expectation of more severe weather driving power outages Natural Gas will be the fuel of the future - Huge supply & increasing demand for applications beyond standby power Legacy infrastructure needs major investment cycle · Rebuilding of transportation, water & power will take decades Telecommunications infrastructure shifting to next generation - 5G will enable new technologies requiring significant improvement in network uptime New Emerging Trend... Home as a Sanctuary - Millions of people working, learning, shopping, entertaining, and in general, spending more time at home GENERAC#66 Macro Investment Themes 10% Organic CAGR since IPO in 2010 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '19 $2,000 $1,500 $1,000 $500 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. Creating a Leading "Energy Technology" Company Power Quality Issues Continue To Increase - Over 500 million outage hours during 2019 (nearly 20% higher than LT baseline average) - 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 - Only 4.75% 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 - 330k US sites & only 1/3 have backup - Generac #1 supplier - Technology to rollout globally - Generac footprint can serve#77 Vertically Integrated Manufacturing Capacity Serving a Globally Diverse Commercial Footprint Generac Worldwide Locations Wisconsin, USA Generac Eagle Janesville Jefferson Oshkosh Waukesha (HQ) Whitewater Generac Mobile Products Berlin Vancouver, BC Neurio Vermont, USA Country Home Products Maine, USA Pika Energy United Kingdom Pramac UK France Pramac France Spain Germany Motortech Pramac GMBH Poland Pramac SP. ZOO Motortech Russia Pramac Russia Pramac Iberica Italy Generac Mobile Products Dominican Republic Mexico Ottomotores Selmec Pramac Caribbean Brasil Generac Pramac Brasil Italy Pramac Industrial 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#88 Power Platforms Consumer Power Products Air-cooled Home Standby Generators Liquid-cooled Prime and emergency backup for: - Residential Light Commercial Home Standby Construction Generators Recreation Portable & Inverter Generators 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 May C&I Stationary Products Larger KW & Container Gensets Industrial Stationary Generators Commercial Stationary Generators Complete lines of diesel & natural gas generators Prime and emergency backup for: Healthcare - Telecom/Data Centers - Municipal - Manufacturing - Distribution - Hospitality Restaurants Retail Mobile Power Products Light Towers Mobile Generators Heaters & Pumps Support equipment for: - Construction - Oil and Gas - Mining - Special Events Road Development - General Rental needs GENERAC#9Growth Drivers GENERAC GENERAC 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 6#1010 Global Distribution Channels Residential and C&I Dealer Network I International network of nearly 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 | Support for global large account sales Significant Omni-Channel Distribution Other Key Channels Locke SUPPLY CO Walmart COSTCO WHOLESALE MENARDS LOWE'S BUNNINGS Lets Build Something Together warehouse REXEL Sonepar Electrical & Datacom Products LEROY MERLIN CED BRICOMAN GREENTECH Electrical Wholesalers amazon KAISER+KRAFT ELECTRIC GENERATORS DIRECT BUNGHEINRICH PROFI GRAINGER SHOP Catalog and E-Commerce Speedy Ruchan ooredoo GE Jenbacher TARGET gamy verizon bouygues at&t United Rentals SUNBELT RENTAL CANADIAN TIRE THE HOM DEP Mass Retailers CRAFTSMAN. Honeywell DEWALT GUARANTEED TOUGH. Licensing Partners PROFESS DR DONE RIGHT Direct to Global Accounts Direct to Consumer GENERAC#11Generac's ESS Solution MORE POWER - 9/11 kW Max. Continuous - 50 A Motor Starting Current MORE CAPACITY - 3.0 kWh Battery Modules - 9 - 18 kWh per Cabinet LOAD MANAGEMENT - 50 A and 100 A Automatic Smart Management Modules GENERAC GENERAC PWRCELL PWRLD GENERAC GENERAC PWR OUTDOOR RATED - Type 3R Battery Cabinet -10 to 50°C Operating Temperature Range WHOLE HOME BACKUP - 200 A and 100 A Whole Home Transfer Switches PWRcell Whole Home Backup... CLEAN & SIMPLE#1212 Whole Home Power Means MORE Power Same hardware. New Capabilities. GENERAC OLD NEW PWR CELL Continuous Power 8kW 9kW Peak Motor Starting Current 42A 50A Add a second PWRcell battery for up to 11 kW continuous. GENERAC#1313 Whole Home Power Means MORE Capacity GENERAC PWR # of Modules 6 Old Capacity 17.1 New Capacity 18 OR SPACER SPACER OR OR 5 4 14.3 11.4 3 8.6 15 12 9 GENERAC#1414 Whole Home Power Means SMART Load Control PWRcell ATS Controller GENERAC PWR GENERAC Smart Management Modules Sure-Start HVAC Soft Start GENERAC GENERAC - Sure Start Y THE Priority management up to 4 HVAC loads Integrated into PWRcell ATS | Easy to wire Can control up to 8x additional circuits Allows larger loads to be backed up Coordinate load priority with PWRcell ATS Controller Significantly reduces HVAC starting current (LRA) Enables PWRcell to start larger motor loads, such as a 3-ton A/C#15Whole Home Power Comparison 20 20 15 10 Power/Energy (kW/kWh) 5 +56% +33% +80% 0 PWRcell PEAK CURRENT CONTINUOUS POWER USEABLE ENERGY Tesla PWRcell Tesla Peak Current 50A 32 Continuous Power 9kW 5kW Useable Energy 18kWh 13.5kWh 15 LG Chem 31 5kW 9.3kWh 50 50 40 40 30 50 Peak Current 20 20 10 10 0 LG Chem#1616 Rapidly Building Clean Energy Distribution NATIONAL Sunnova REGIONAL LONG TAIL momentum SOLAR Trinity SOLAR infinity energy BAKER ELECTRIC HOME ENERGY SOLAR )MOXIE AMERICA'S SOLAR COMPANY HEATING & AIR SMART HOME EHS Efficient Home Services CED GREENTECH Soligent BayWa r.e. WESCO Gexpro windmar SOLAR REVOLU(SUN. ①TITAN SOLAR POWEE POWERHOME SOLAR Krannich global solar distribution INTER ISLAND SOLAR SUPPLY Suntuity SOLAR Sonepar usa GENERAC#1717 Enterprise Strategy Grow: Further expand market penetration in North America while establishing traction for these products globally. GROW Residential Standby Market GAIN Share & New Markets 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 Customers, Partners & Product Connect: By being connected to the devices we manufacture we will drive additional value to our customers and our partners over the product lifecycle. POWERING OUR FUTURE GENERAC#1818 Financial Summary Adjusted EBITDA Adjusted EBITDA margin % Total Net Sales Gross Margin % 60.0% $500 $454.1 $464.3 $2,204.3 $2,214.8 $2,200 $424.6 $2,023.5 47.5% 50.0% $400 $1,679.4 37.5% $1,600 $1,447.7 $317.3 40.0% $300 $278.4 27.5% $1,000 35.8% 35.8% 36.2% 37.1% 34.8% 30.0% $200 21.0% 20.6% 21.0% 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 $350 $300 $250.7 $250 $222.9 $227.9 $203.6 $200 $150 $100 $50 $0 2016 2017 2018 2019 Consolidated Gross Debt Consolidated Gross Debt Leverage Ratio $349.2 $1,200 $1,000 5.0x $1,052.9 $928.7 $924.0 $898.9 $896.5 4.0x $800 $600 3.0x 3.3x $400 2.0x $200 2.2x 2.2x 2.0x 1.9x $0 1.0x LTM 2016 2017 2018 2019 LTM Note: Adjusted EBITDA margin calculated using adjusted EBITDA before deducting for non-controlling interest. GENERAC#1919 Capital Deployment Priorities 1 Organic I Invest in technology, innovation, and R&D capabilities 2017-2019 $ Asset Lite ~150m Growth I Capacity expansion; Global systems; High ROI automation 23 I Target 2-3x leverage Pay Down I Term Loan matures 2026, ABL matures 2023 Debt I $500mm notional swapped fixed Deleveraging Story ~200m I Demonstrated ability to execute; 15 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 Opportunistic ~50m I $250mm remaining on current share repurchase authorization Strong balance sheet and cash flow generation enables disciplined and balanced approach toward capital deployment that creates value for shareholders TOTAL ~600m GENERAC#20GENERAC Appendix#21GENERAC Expect to Utilize Strong Free Cash Flow Generation to Increase Shareholder Value 2020 Business Outlook (As reported on July 30, 2020) Consolidated net sales Baseline case: increase between 5% to 8% Residential products: significant year-over-year growth C&I products: down significantly vs. prior year Upside case: could add another 2% to 3% of revenue growth | Adjusted EBITDA margins: between 21.5% to 22.0% | Cash income tax rate: approximately 17.0% | Free cash flow: conversion of adjusted net income of approximately 90% 21 21 GENERAC#22Q1 2010 20 Q1 2011 Expanding Power Outage Severity" Total Outage Hours (Severity) Legacy Residential Organic Sales - LTM Elevated Baseline Outages + Major Event = Catalysts for Growth 1,200,000 Q1 2012 22 22 (1) Represents power outage hours for mainland U.S. only Q4 Q1 2013 Q4 Q1 2014 Q2 Q4 Q1 2015 ठ Q4 Q1 2016 Q1 2017 Q1 2018 Q4 2019 Q1 2020 600,000 400,000 200,000 800,000 1,000,000 GENERAC#2323 Summary of Acquisitions MAGNUM OCT. 2011 Magnum Products is a leading manufacturer of high-quality light towers, and mobile MAC OCT. 2014 generators. Berlin, WI MAC is a leading manufacturer of premium- grade commercial and industrial mobile heaters within the U.S. and Canada. Bismarck, ND and remote monitoring platform for Latin America market Mexico City, Mexico DEC. AUG. ottomotores Country Home CAPTIVA 2012 2015 PRODUCTS Leading manufacturer of industrial power generation equipment in Mexico and Expands chore-related products line-up other parts of Latin America. Mexico City, Mexico and provides additional scale to the residential engine-powered tools platform Vergennes, VT TLE TOWER AUG. MAR. 2013 PRAMAC 2016 LIGHT GROUP Mobile light towers for EMEA and other international markets Milan, Italy Stationary, mobile and portable generators sold into over 150 countries worldwide Siena, Italy NOV. BALDOR Expands domestic offering of standby and prime-duty gensets up to 2.5 MW Oshkosh, WI MOTORTECH® 2013 JAN. 2017 Gaseous-engine control systems and accessories sold to engine OEMs and aftermarket customers Celle, Germany JUN. 2018 Selmec Larger kW and container gensets; service Acquisitions used to accelerate Powering Our Future strategy Revenue synergies | New products, customers, end markets. Numerous cross-selling opportunities Geographic and international expansion. FEB. 2019 Cost synergies Captiva Energy Solutions, founded in 2010 and headquartered in Kolkata, India specializes in customized industrial generators. Kolkata, India neurio MAR. 2019 The leading energy data company focused on metering technology and sophisticated analytics to optimize energy use Vancouver, BC Pika ENERGY APR. 2019 Leading manufacturer of smart storage solutions and smart batteries Strategic global sourcing initiatives Innovation and cost- reduction engineering Adopt Generac's lean cost culture | Operational excellence focus 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); Mean Green Products in September 2020 (battery powered, turf care products Ross, OH) Portland, Maine GENERAC#24vek Tyvek Tyvek Tyvek Tyvek kTyvek Tyvek Tyvel 24 24 Favorable 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 Results in present value tax savings of $60 million (2) or $.90-$1.00 per share 2 | Reduces cash tax obligation on average by ~$33 million per year through 2021 ($ MM) TOTAL 2020 2021 2022+ $130 $107 $27 $33 $27 $7 Annual tax amortization $264 Cash tax savings (1) $67 (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% GENERAC#2525 Net Sales by Product Class $1,000 $900 $800 $700 $870 $769 $600 $558 $500 $400 $300 $200 $100 $0 2016 RESIDENTIAL $120 $684 2017 COMMERCIAL & INDUSTRIAL $125 OTHER $1,043 $820 2018 $160 $1,144 Figures include results from acquisitions completed during 2011 - 2019; see slide titled "Summary of Acquisitions" for further details. $872 2019 $189 $1,256 GENERAC $759 LTM $199#2626 % of US Addressable Market HSB: A Penetration Story North American Penetration Opportunity (1) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1945 1955 1965 Central Air Conditioning Home Security Alarms (professionally monitored) Portable Generators Home Standby Generators 1975 1985 1995 2005 2013 2019 Every 1% of increased penetration equals -$2.5 billion of market opportunity 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% (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. GENERAC#27Q1 2020 & LTM Financial Overview Actual Q2 2020 (unaudited) Y/Y % Change Actual LTM (unaudited) Y/Y % Change Residential $341.4 27.2% $1,256.5 15.1% Industrial 154.9 (32.8%) 759.0 (12.7%) Other 50.6 17.4% 199.3 12.7% Net Sales $546.8 0.9% $2,214.8 3.6% Gross Profit $209.0 6.7% 821.0 7.7% % Margin 38.2% 37.1% Adjusted EBITDA $123.1 10.1% $464.3 3.3% % Margin (1) 22.5% 21.0% Net Income GHI (2) $66.1 6.8% $255.8 (0.9%) Adjusted Net Income - GHI $88.5 18.1% $330.0 6.9% Adjusted EPS - GHI $1.40 16.4% $5.23 5.9% Free Cash Flow $89.0 NM $349.2 181.8% Consolidated Gross Debt $896.5 Consolidated Gross Debt Leverage Ratio 1.9x 27 (1) Adjusted EBITDA (margin) calculated using adjusted EBITDA before deducting for non-controlling interest. (2) Q2 2020 and 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. GENERAC#2828 Adjusted EBITDA Reconciliation 2016 2017 2018 2019 LTM Net income Interest expense Depreciation and amortization Income taxes provision $97.2 $159.6 $241.2 $252.3 $251.8 44.6 42.7 41.0 41.5 37.8 54.4 52.0 47.4 60.8 66.3 56.5 44.1 69.9 67.3 61.4 Non-cash write-down and other charges 7.5 5.8 3.5 0.8 1.9 Non-cash share-based compensation expense 9.5 10.2 14.6 16.7 18.7 Loss on extinguishment of debt 0.6 1.3 0.9 0.9 (Gain) loss on change in contractual interest rate 3.0 Transaction costs and credit facility fees 2.4 2.1 3.9 2.7 1.6 Loss on pension settlement and other 0.9 0.8 1.8 11.0 23.7 Adjusted EBITDA $276.5 $317.3 $424.6 $454.1 $464.3 Adjusted EBITDA attributable to noncontrolling interests (3.8) Adjusted EBITDA attributable to Generac Holdings, Inc. $272.7 (6.1) $311.2 (7.8) $416.8 (5.0) $449.1 (2.2) $462.1 GENERAC#2929 Adjusted EBITDA Reconciliation Net income to Adjusted EBITDA reconciliation Three months ended June 30, LTM Ended June 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 $66,145 $61,958 $255,793 $258,170 (2,553) (252) (3,957) 2,524 63,592 61,706 251,836 260,694 7,932 10,452 37,805 40,565 16,803 14,740 66,339 51,472 18,473 18,827 61,404 73,870 Non-cash write-down and other charges (893) 1,726 1,872 2,021 Non-cash share-based compensation expense 5,400 4,334 18,740 15,500 Loss on extinguishment of debt 926 Transaction costs and credit facility fees 358 413 Loss on pension settlement, restructuring and other 11,475 (312) 1,627 23,717 4,879 554 Adjusted EBITDA Adjusted EBITDA attributable to noncontrolling interests 123,140 (132) Adjusted EBITDA attributable to Generac Holdings, Inc. $123,008 111,886 (763) $111,123 464,266 449,555 (2,182) $462,084 (6,393) $443,162 GENERAC#30Adjusted Net Income and Free Cash Flow Reconciliations Net income to Adjusted net income reconciliation Three months ended June 30, LTM Ended June 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 $66,145 (2,553) $61,958 (252) $255,793 $258,170 (3,957) 2,524 63,592 61,706 251,836 260,694 18,473 18,827 61,404 73,870 Income before provision for income taxes 82,065 80,533 313,240 334,564 Amortization of intangible assets 7,667 7,251 31,499 23,591 Amortization of deferred financing costs and OID 644 1,199 3,622 4,758 Loss on extinguishment of debt 926 Transaction costs and credit facility fees 191 173 (103) 2,972 Loss on pension settlement, restructuring and other 11,460 73 24,222 1,027 Adjusted net income before provision for income taxes 102,027 89,229 373,406 366,912 Cash income tax expense (13,877) (14,105) (44,552) (55,155) Adjusted net income $88,150 $75,124 $328,854 $311,757 Adjusted net income attributable to noncontrolling interests Adjusted net income attributable to Generac Holdings. Inc. 342 $88,492 (222) $74,902 1,131 $329,985 (3,174) $308,583 Free Cash Flow Reconciliation Net cash provided by operating activities $101,768 $8,043 $399,387 $190,184 "Proceeds from beneficial interests in securitization transactions" 706 Expenditures for property and equipment (13,438) 653 (18,474) Free cash flow $89,036 $(9,778) 2,558 (52,758) $349,187 3,400 (69,651) $123,933 50 30 GENERAC