#1INVESTOR PRESENTATION August 2023 OUR PURPOSE: Lead the evolution to more resilient, efficient, and sustainable energy solutions. GENERAC®#2INVESTOR RELATIONS Aaron Jagdfeld PRESIDENT & CEO York Ragen CHIEF FINANCIAL OFFICER Mike Harris SENIOR VICE PRESIDENT - CORPORATE DEVELOPMENT & INVESTOR RELATIONS Kris Rosemann SENIOR MANAGER - CORPORATE · DEVELOPMENT & INVESTOR RELATIONS (262) 506-6064 Investor [email protected] PWR GENERAC BENERIC#3FORWARD LOOKING STATEMENTS GENERAC Certain statements contained in this presentation, 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; fluctuations in cost and quality of raw materials required to manufacture our products; availability of both labor and key components from our manufacturing operations and global supply chain, including single-sourced components and contract manufacturers, needed in producing our products; 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; the impact on our results of possible fluctuations in interest rates, foreign currency exchange rates, commodities, product mix, logistics costs and regulatory tariffs; difficulties we may encounter as our business expands globally or into new markets; ⚫ our dependence on our distribution network; • our ability to remain competitive by investing in, developing or adapting to changing technologies and manufacturing techniques, as well as protecting our intellectual property rights; ⚫ loss of our key management and employees; • increase in product and other liability claims or recalls; • failures or security breaches of our networks, information technology systems, or connected products; . • • changes in laws and regulations regarding environmental, health and safety, product compliance, or international trade that affect our products, operations, or customer demand; significant legal proceedings, claims, lawsuits or government investigations; and changes in durable goods spending by consumers and businesses or other macroeconomic conditions, impacting demand for our products. 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 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 2022 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 AT A GLANCE NYSE: GNRC FOUNDED IN S&P 500 1959 LTM NET SALES $4.0 BILLION GENERAC -9,500 EMPLOYEES WORLDWIDE AS OF 12/31/2022 ~1.000 ENGINEERS WORLDWIDE AS OF 12/31/2022 LTM ADJ EBITDA $594 MILLION OMNI CHANNEL DISTRIBUTION THOUSANDS OF DEALERS, WHOLESALERS, RETAILERS AND E-COMMERCE PARTNERS 4#5ABOUT GENERAC Residential LTM Net Sales Home Standby, Clean Energy, Portables, Chore Products Domestic 80% | International 20% < Gus GENERAC EN Ready to ran wwwwww GENERAC PWROT Residential 54% Commercial & Industrial 35% Other 11% Other Aftermarket Parts, Product Accessories, Extended Warranty, Grid Services, Remote Monitoring Concerto Mobile Link. eco+ GENERAC® Commercial & Industrial Stationary Gens, Telecom, Mobile & Storage GENERAC COURTRIAL GENERAC GENERAC INDUSTRIAL POWER GENERAC 5#6TRACK RECORD OF GROWTH 16% REVENUE CAGR (2010 IPO THROUGH 2023E) $4,000 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 '23E STRATEGIC GROWTH THEMES $6,000 $5,000 $3,000 $2,000 $1,000 • • • Power Quality Issues Continue to Increase Home Standby Penetration Opportunity is Significant Solar, Storage, & Energy Management Markets Developing Quickly Grid Services & Energy-as-a-Service Open New Revenue Streams Natural Gas Generators Driving Strong Growth Rollout of 5G Will Require Improved Network Reliability Note: $ amounts in millions. Represents gross sales excluding freight revenue. Figures include results from acquisitions completed during 2011-present. CAGR measures revenue growth through 2023E off 2010 base. 2023E figure assumes midpoint of guidance given on August 2, 2023. 6#7MEGA-TRENDS REVIEW ☑ "Grid 2.0" - Evolution of the traditional electrical utility model Decarbonization, digitization, and decentralization of the grid and migration towards distributed energy resources will create Clean Energy and Grid Services opportunities Impact of Climate Change Expectation of more volatile and severe weather driving increased power outage activity Natural Gas as an important transition fuel of the future Natural gas will remain in demand as a source of reliable power generation for backup power and beyond standby applications Legacy infrastructure needs major investment cycle Rebuilding and upgrading of aging networks and systems including transportation, water & power Telecommunications infrastructure shifting to next generation 5G will enable new technologies requiring significant improvement in network uptime through backup power solutions Home as a Sanctuary Trend of more people working, shopping, entertaining, aging in place, and in general, spending more time at home, increasing sensitivity to power outages GENERAC GENERAC 7#8GROWING ELECTRICITY SUPPLY/DEMAND IMBALANCE Demand Rapidly Increasing Supply Reliability Deteriorating . Climate change impacts – more severe and volatile weather One-way system - capacity constrained and reliant on fossil fuels • Infrastructure underinvestment - susceptible to power outages • Penalties for carbon intensity – incentivizing more intermittent renewables GENERAC • Increasing intermittency – higher potential grid instability and rolling blackouts . Electrification of everything - dramatic increase in electricity demand • Transportation - EV adoption & charging • Homes & businesses - electrification of HVAC, water heating, appliances • Home as a Sanctuary - Higher 9s of reliability . Overall higher sensitivity to power outages 104 | 99.9% 25% of Americans are at high risk of resource adequacy shortfalls during normal seasonal peak conditions in the 2023-2027 period¹ 1.2022 NERC Long Term Reliability Assessment Report 8#9ENTERPRISE STRATEGY GENERAC GENERAC POWERING A SMARTER WORLD Improve energy resilience and independence Increase power reliability through onsite generation and storage solutions that provide resiliency for homes, businesses and communities. Optimize energy efficiency and consumption Enable sustainable and more efficient power generation and consumption through monitoring, management and lower-carbon solutions. Protect and build critical infrastructure Offering innovative solutions that enable and protect next-generation power, communications, transportation and other critical infrastructure. OUR PURPOSE: Lead the evolution to more resilient, efficient, and sustainable energy solutions. 6#10STRATEGY EVOLUTION UNLOCKS MASSIVE & GROWING SAM 2018 SAM: $14B Key Acquisitions (2019-2023) neurio MEANGREEN MOWERS DSE Pika ENERGY enbala YOUR GRID. IN BALANCE. 2025 | GENERAC Projected ~5X Expansion of Served Addressable Market (SAM) since 2018! Key drivers of increase in SAM... ✓ Clean Energy - Residential and C&I storage, rooftop MLPEs, hydrogen / hybrid gens, EV chargers ✓ Connected Devices - Smart thermostats, monitoring & management devices ✓ Energy as a Service / Microgrids ✓ Global C&I - Gas gens, telecom, base expansion ✓ Grid Services - Hardware + Software + Services ✓ Expansion of HSB Market ✓ Chore Products Electrification Source: Company estimates, various third-party sources DEEP SEA ELECTRONICS Chilicon Power SAM: $72B Offgrid energy ankutility Blue Pillar Apricity ecobee REFUstor 10#11BUILDING ENERGY ECOSYSTEMS AGGREGATING DERS TO SUPPORT NEXT-GEN GRID GENERAC RESI ECOSYSTEM GENERAC C&I ECOSYSTEM سال GENERAC GENERAG PWRE User Interface Platform GENERAC PWR VIEW DEVER AC 72 GENERAC PWRVIEW e ML Concerto™ Gratus Ө Ready to run 12535 www GENERATION & STORAGE ASSETS + MONITORING & MANAGEMENT DEVICES + PLATFORM & CONTROLS "Single Pane of Glass" + DISTRIBUTED ENERGY RESOURCE MANAGEMENT SYSTEM (DERMS) 0000 DSE 00000 System Level Controls 72% Blue Pillar Concerto™ DECARBONIZATION, DIGITALIZATION, DECENTRALIZATION 11#12MASSIVE HSB PENETRATION OPPORTUNITY Widespread growth potential · Total US penetration rate estimated at -5.75% as of 2022 Highest penetrated markets in the U.S. are at 15-20%+ and still growing Three powerful mega-trends underpin future growth: Severe & volatile weather becoming more prominent - four major outage events since 2020 • Home-as-a-Sanctuary persists with remote/hybrid work trends intact and aging in place Grid supply/demand imbalances resulting from accelerated decarbonization/electrification trends BRITISH ALBERTA COLUMBIA SASKATCHEWAN WASHINGTON OREGON IDAHO CALIFORNIA Los Angeles San Diego NEVADA UTAH BAJA Penetration % by State 19.3% to 22.0% 16.5% to 19.2% 13.8% to 16.4% 11.0% to 13.7% 8.3% to 10.9% 5.5% to 8.2% 2.8% to 5.4% 0.0% to 2.7% GENERAC ONTARIO MANITOBA MONTANA NORTH DAKOTA MINNESOTA SOUTH DAKOTA WISCONSIN Lake Superior Montreal Ottawa VT. N.H. Lake Huron Toronto MASS. NEW YORK CONN. MICHIGAN WYOMING Lake Michigan IO WA NEBRASKA Chicago ARIZONA Phoenix NEW MEXICO UNITE ME. Lake Ene PENNSYLVANIA New York Philadelphia QHIQ INDIANA ILLINOIS W. VA. ES VIRGINIA COLORADO KANSAS MISSOURI TEXAS CHIHUAHUA SONORA Gulf of California SINALOA MEXICO NUEVO LEON KENTUCKY TENNESSEE OKLAHOMA ARKANSAS Dallas LOUISIANA Houston San Antonio MISSISSIPPI NORTH CAROLINA GEORGIA ALABAMA Gulf of S. C. FLORIDA Washington MD. Nassau 費 NEW BRUNSWICK Three largest markets (CA, TX, & FL) combined represent ~25% of addressable HHs, and are significantly underpenetrated at ~3.5% 12#13HSB MEGA-TRENDS DRIVE SUSTAINED NEW & HIGHER BASELINE OF DEMAND 費 Major Outage Events Baseline Outage Hours بالسيل Dealers GENERAC 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 In-Home Consultations (IHCs) Activations 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 Powerful Mega-Trends Expected to Drive "Next Step" of Growth for HSB Category Note: IHC's and Activations reflect U.S. and Canadian markets 13#14BROAD RESIDENTIAL ENERGY TECHNOLOGY PRODUCT OFFERING Integrated Energy Ecosystem PWRmicro AC 2:1 Microinverter PWRcell Solar + Battery Storage Efficient, Powerful, Smart Inverter + Storage EV Charging GENERAC $10+ BILLION DOMESTIC SAM BY 2025 но ecobee Smart Thermostat PWRmanager Intelligent Load-Management PWRcell ATS Whole or Partial Home Disconnect Home Standby Generator Whole Home Backup Propane Level Monitoring SMART GRID READY $ GENERAC GRID SERVICES 14#15• COMMERCIAL & INDUSTRIAL GLOBAL ENERGY TECHNOLOGY OPPORTUNITIES Beyond Standby use of natural gas generators • EaaS / Multi purpose microgrids • Advanced generator & microgrid controls • C&l energy storage • Hybrid systems - generators and/or solar + storage • Hydrogen fueled generators • SMART GENERAC GRID GRID Grid Services capabilities revolutionize generator economics zer 00 8% rose Emission free power PRAMAC EODev GEH2 TE GEH2 HYDROGEN EODev READY SERVICES GENERAC INDUSTRIAL POWER GENERAC® $5+ BILLION GLOBAL SAM BY 2025 WAT GR TAX GE JARE NET CU.CAP Blue Pillar Key Generac proprietary fuel system & control technology HOT HOT HOT HOT + SBE 1000 ENCHANTED ROCK The Power is On. Manufactured by Generac to Enchanted Rock's design criteria 15#16FINANCIAL SUMMARY ($'S IN MILLIONS) Adjusted EBITDA Adjusted EBITDA margin % Total Net Sales Gross Margin % $1,000 50.0% $5,000 $4,564.7 $861.4 $825.4 $4,025.8 55.0% $4,000 $3,737.2 $800 40.0% $594.1 $583.8 $3,000 $600 $2,204.3 $2,485.2 45.0% $454.1 30.0% $2,000 $400 38.5% 35.0% 36.4% 23.5% 23.1% 20.0% $1,000 36.2% $200 33.3% 20.6% 32.4% 18.1% 14.8% $0 25.0% $0 10.0% 2019 2020 2021 2022 LTM 2019 2020 2021 2022 LTM Free Cash Flow Consolidated Gross Debt Consolidated Gross Debt Leverage Ratio $2,000 5.0x $450 $350 $427.1 $305.8 $1,623.3 $1,600 $1,430.8 4.0x $250.7 $1,200 3.0x $250 $898.9 $980.1 $885.2 2.8x $800 2.0x $150 $19.0 2.0x 1.8x $50 $400 1.0x 1.5x 1.2x -$50 2019 2020 2021 2022 $(24.1) LTM $0 0.0x 2019 2020 2021 2022 LTM -$150 Note: Adjusted EBITDA margin calculated using adjusted EBITDA before deducting for non-controlling interest. GENERAC 16#17CAPITAL DEPLOYMENT PRIORITIES | Asset lite with capex only 2.5% to 3.0% of sales 1 Organic Growth | Investment in technology, innovation and R&D capabilities | Capacity expansion, global systems, high ROI automation Asset Lite | Robust M&A pipeline 2 | Demonstrated ability to execute; 28 deals since 2011 M&A | Accelerates "Powering a Smarter World" strategic plan | Target 1-2x leverage 3 Debt Pay Down | Seek high synergy opportunities with above WACC returns | Term Loan B (S +175) matures 2026 | Term Loan A and revolver (S +125-175) matures 2027 | $500M notional swapped fixed Accelerate the strategy Maintain Healthy Balance Sheet 4 Capital Return of | As future cash flow permits, will evaluate options opportunistically | $278mm remaining on current share repurchase authorization Opportunistic Strong balance sheet and long-term cash flow generation allows flexibility to execute on future shareholder-value enhancing opportunities GENERAC 17#182023 BUSINESS OUTLOOK (AS REPORTED ON August 2, 2023) Consolidated net sales • • . Consolidated revenue: decrease between 10% to 12% Residential products: decrease in the mid-20% range C&I products: increase at mid-teens rate 2% net impact from acquisitions and foreign currency Adjusted EBITDA margins • Between 15.5% to 16.5% GAAP effective tax rate Approximately 25.0% Free cash flow Conversion of adjusted net income to free cash flow well over 100% 90 GENERAC Expect to Utilize Free Cash Flow Generation to Increase Shareholder Value 18#19APPENDIX GENERAC#20SUMMARY OF ACQUISITIONS - SINCE 2017 GENERAC MOTORTECH® JAN. 2017 Gaseous-engine control systems and accessories sold to engine OEMs and aftermarket customers MEANGREEN MOWERS SEP. 2020 Leading manufacturer of an innovative commercial line of battery powered turf care products Apricity SEP. 2021 Advanced engineering and product design company focused on developing energy technology solutions Celle, Germany Ross, OH JUN. Selmec enbala 2018 ост. 2020 Larger kW and container gensets; service and remote monitoring platform for Latin America market Leading provider of distributed energy optimization and control software for the electrical grid Tankutility Provider of IoT propane tank monitoring solutions that enable the optimization of propane fuel logistics Bend, OR OCT. 2021 • Acquisitions used to accelerate 'Powering a Smarter World' strategy Revenue synergies New products, customers, end markets Mexico City, Mexico Denver, CO CAPTIVA FEB. DEEP SEA ENERGY SOLUTIONS 2019 DSE ELECTRONICS JUN. 2021 Captiva Energy Solutions, founded in 2010 and headquartered in Kolkata, India specializes in customized industrial generators. Designer and manufacturer of advanced controls for a range of energy technology applications ecobee Leader in sustainable home technology solutions including smart thermostats that deliver significant energy savings, security and peace of mind • Boston, MA Numerous cross-selling opportunities • DEC. 2021 Geographic and international expansion Cost synergies • Strategic global sourcing initiatives Kolkata, India Hunmanby, UK MAR. neurio Chilicon Power 2019 JUL. 2021 Toronto, CA OCT. • Innovation and cost-reduction engineering Blue Pillar 2022 . The leading energy data company focused on metering technology and sophisticated analytics to optimize energy use Designer and provider of grid-interactive microinverter and monitoring solutions for the solar market IoT platform developer that designs, deploys, and manages Industrial loT solutions • Adopt Generac's lean cost culture Operational excellence focus Vancouver, BC Los Angeles, CA APR. 2019 Pika ENERGY Leading manufacturer of smart storage solutions and smart batteries Leading designer and manufacturer of industrial- grade energy storage systems Offgrid energy SEP. 2021 Portland, ME Indianapolis, IN FEB. 2023 Rugby, UK Developer and supplier of battery storage hardware products, advanced software, and platform services for the commercial and industrial market Pfullingen, Germany REFU stor Smaller acquisitions of Pramac America in September 2017 (portable generators - Marietta, GA); Energy Systems in July 2020 (industrial distributor - Stockton, CA); Papé Material Handling in December 2021 (industrial distributor - Los Angeles, CA); Electronic Environments Infrastructure Solutions in July 2022 (industrial distributor - Marlborough, MA) 20 20#21HSB: A PENETRATION STORY North American Penetration Opportunity(1) % of US Addressable Market 90% 80% 70% 60% 50% 40% 30% 20% 88.1% 28.0% 19.5% GENERAC Aging Population Fits Demographic • ~65% of buyers age 60 and older • ~Median home value of approximately $525k • ~80-85% retro-fit application • ~$145K median household income • Between 6-8% replacement units 1955 1965 1975 1985 1995 2005 2015 2020 5.75% Every 1% of increased penetration equals ~$3 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 > $150K; 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. 0% 1945 Central Air Conditioning Home Security Alarms (professionally monitored) Portable Generators Home Standby Generators 10% 21 24#22EXPANDING POWER OUTAGE SEVERITY(1) Total Outage Hours (Severity) -Legacy Residential Organic Sales - LTM GENERAC Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017 2018 2020 2022 2023 2019 2021 (1) Represents power outage hours for mainland U.S. only Elevated Baseline Outages + Major Events + Home as a Sanctuary = Catalysts for Growth 22 24#23PWRCELL® BATTERY POWER COMPARISON Power/Energy (kW/kWh) 20 20 15 10 +33% +55% 5 +20% 0 Tesla PWRcell Powerwall+ Useable Energy Continuous Power 9kW PWRcell 18kWh Tesla 13.5kWh 5.8kW FranklinWH 13.6kWh 5kW Peak Power (seconds) 12kW 10kW 10kW GENERAC USEABLE ENERGY CONTINUOUS POWER PEAK POWER FranklinWH aPower SolarEdge 9.7kWh 5kW 7.5kW SolarEdge Energy Bank Enphase 10.1kWh 3.8kW 5.76kW Enphase IQ 10 Note: Shaded lines represent market leading advantage in terms of power capability, with specific percentages as compared to Tesla 23#24SOLAR INVERTER COMPARISON FOR RESIDENTIAL APPLICATIONS DC PWRzone System with DC Sub-string Optimizers Sub-string Optimizers String Inverter GENERAC PWR CELL Module-Level DC-DC Optimizers DC MLPE System with Module-level Optimizers + Central Inverter String Inverter Performance Comparison Ideal Conditions DC MLPE System Microinverter System DC PWRzone System 2:1 Microinverter System AC Power DC Power solaredge AC 2:1 Microinverter System with Module-level Microinverters GENERAC PWR MICRO AC Microinverter System with Module-level Microinverters Microinverters FULL SUN PARTIAL SUN LOW SUN ENPHASE GENERAC 24 24#25SECULAR GROWTH TRENDS IN TELECOM ARE GLOBAL Wireless Networks Growing Global Tower Count are Critical Infrastructure • 2026E global tower count of • ~5.3M; +30% over 5 years US tower count +30% over last 2 years to 416,000 GENERAC Network Hardening Still Underway Generac Uniquely Positioned to Capture Opportunity • • • Network reliability & up-time necessary for a connected world Power failure = network failure Energy costs & sustainability requirements are accelerating the energy transition • • 50% of US sites yet to be hardened, expected to hit -75% in 10 years, $2B opportunity Global opportunity expanding with tower count growth and Telecom driven Data Center Edge expansion • Global presence and relationships with carriers & tower companies ~60% share of US market 25#26Q2 2023 & LTM FINANCIAL OVERVIEW ($'S IN MILLIONS) Actual Y/Y % Q2 2023 Change Actual LTM Y/Y % Change (unaudited) (unaudited) Residential $ 498.6 (44.4%) 2,156.4 (27.8%) Commercial & Industrial 384.4 24.2% 1,420.0 25.6% Other 117.5 36.6% 449.4 40.9% Net Sales $ 1,000.4 (22.5%) $ 4,025.8 (9.3%) Gross Profit $ 328.4 (28.1%) $ % Margin 32.8% 1,305.2 32.4% (13.9%) Adjusted EBITDA $ 136.5 (49.7%) 594.1 (33.8%) % Margin (1) 13.6% 14.8% Net Income GHI $ 45.2 (71.1%) 186.9 (65.7%) Adjusted Net Income - GHI $ 67.5 (63.5%) 332.4 (46.9%) Adjusted EPS - GHI $ 1.08 (62.1%) 5.24 (46.0%) Free Cash Flow $ 53.9 829.1% $ 19.0 (63.9%) Consolidated Gross Debt $ Consolidated Gross Debt Leverage Ratio 1,623.3 2.8 GENERAC (1) Adjusted EBITDA (margin) calculated using adjusted EBITDA before deducting for non-controlling interest. 26#27ADJUSTED EBITDA RECONCILIATION ($'S IN MILLIONS) GENERAC 2019 2020 2021 2022 $252.3 $ 347.2 $ 556.6 $ 408.9 LTM $194.0 41.5 33.0 33.0 54.8 83.2 60.8 68.8 92.0 156.1 159.8 67.3 99.0 135.0 99.6 48.9 0.2 (0.3) (3.1) (2.1) (6.2) 16.7 20.9 24.0 29.5 33.3 0.9 0.8 3.7 2.7 2.2 22.4 5.0 4.7 11.6 13.1 0.8 69.8 76.4 $ 454.1 $ 583.8 $ 861.4 $ 825.4 $ 594.1 (5.0) (2.4) $449.2 $ 581.4 (9.4) $ 852.1 (15.1) $ 810.3 (11.6) $ 582.5 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 Transaction costs and credit facility fees Business optimization, provision for regulatory and clean energy product charges, and other Adjusted EBITDA Adjusted EBITDA attributable to noncontrolling interests Adjusted EBITDA attributable to Generac Holdings, Inc. 27 27#28ADJUSTED EBITDA RECONCILIATION ($'S IN MILLIONS) Net income to Adjusted EBITDA reconciliation Three months ended 2023 June 30, (unaudited) 2022 GENERAC LTM Ended June 30, 2023 (unaudited) 2022 Net income attributable to Generac Holdings. Inc. Net income attributable to noncontrolling interests Net income Interest expense Depreciation and amortization Income taxes provision $ 45,198 $ 156,359 $ 186,913 $ 544,682 317 1,278 7,100 45,515 157,637 194,013 8,566 553,248 25,160 10,235 83,192 37,298 41,247 39,098 159,780 130,134 15,907 45,826 48,918 127,661 Non-cash write-down and other charges (4,152) 4,607 (6,218) (3,560) Non-cash share-based compensation expense 10,045 7,735 33,298 28,095 Loss on extinguishment of debt 3,743 3,743 Transaction costs and credit facility fees 1,149 1,592 4,685 18,852 Business optimization, provision for regulatory clean energy product charges, and other Adjusted EBITDA 1,673 989 76,444 1,960 136,544 271,462 594,112 897,431 Adjusted EBITDA attributable to noncontrolling interests (520) (3,742) (11,573) (12,311) Adjusted EBITDA attributable to Generac Holdings, Inc. $ 136,024 $ 267,720 $ 582,539 $ 885,120 28#29ADJUSTED NET INCOME AND FREE CASH FLOW RECONCILIATIONS ($'S IN MILLIONS) Net income to Adjusted net income reconciliation Three months ended June 30, GENERAC LTM Ended June 30, 2023 2022 2023 2022 (unaudited) (unaudited) Transaction costs and credit facility fees Net income attributable to Generac Holdings. Inc. Net income attributable to noncontrolling interests Net income Provision for income taxes (1) Income before provision for income taxes Amortization of intangible assets Amortization of deferred financing costs and OID Loss on extinguishment of debt Tax effect of add backs $ 45,198 317 45,515 $ 156,359 1,278 157,637 $ 186,913 $ 544,682 7,100 194,013 8,566 553,248 53,227 45,515 157,637 194,013 606,475 26,393 25,876 103,606 81,785 967 650 3,868 2,581 3,743 3,743 669 5,710 5,021 13,966 (7,459) Business optimization, provision for regulatory charges, and other Cash income tax expense (1) 1,760 (8,448) 1,590 (42,861) 75,428 (17,704) Adjusted net income $ 67,844 Adjusted net income attributable to noncontrolling interests (317) $ 186,758 (1,678) Adjusted net income attributable to Generac Holdings. Inc. $ 67,527 $ 185,080 $ 339,075 (6,555) $ 332,520 2,002 (60,957) $ 631,891 $ 626,231 (5,660) Free Cash Flow Reconciliation Net cash provided by operating activities $ 83,147 $ Proceeds from beneficial interests in securitization transactions Expenditures for property and equipment 677 23,835 270 (29,923) (18,303) Free cash flow $ 1) Amounts prior to the first quarter 2022 are based on an anticipated cash income tax rate due to the existence of the tax shield from the amortization of tax-deductible goodwill and intangible assets from our acquisition by CCMP Capital Advisors, LLC in 2006. Due to the expiration of this tax shield in the fourth quarter of 2021, there is no similar reconciling item for the periods beginning with the first quarter of 2022. $ 53,901 $ 5,802 109,411 3,195 (93,585) 19,021 $ 5,089 (102,273) $ 52,672 $ 149,856 29