Investor Presentaiton
MACRO
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
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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.
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