FULL YEAR 2022 OUTLOOK Financial Discussion slide image

FULL YEAR 2022 OUTLOOK Financial Discussion

CAPITAL ALLOCATION Robust Free Cash Flow and low leverage provide flexibility for continued M&A and increased return of capital Return of Capital: ☐ ➤ Dividend => ~15% CAGR since initiation in 2010; visibility on continued growth Opportunistic approach to stock repurchases => could become greater portion of capital deployment depending on pace of M&A Leverage of 2.5 times net debt to EBITDA* ~ M&A: market-driven strategy with cash returns focus Normalized Capital Deployment ** Return of Capital 37% ➤ Recent period of outsized activity driving outsized acquisitions outlays Capex 38% 2006-2010: $2.1B Deployed 2011 - 2015: $3.9B Deployed 2016-2021: $13.7B Deployed Capex 28% Capex 25% Capex 24% Return of M&A 25% ➤ Acquisitions of ~$125-$150mm annualized revenue expected in average year ➤ Expected higher value creation per capital dollar deployed in more normalized environment M&A Return of Capital M&A Capital M&A Return of Capital 51% 21% 63% 12% 65% 11% *Compliance debt, net of cash, divided by compliance EBITDA. **Potential normalized capital deployment based on typical expected level of acquisition activity. 14
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