Q2 2023 Financial Overview & Strategic Plan
CAPITAL 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
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