Investor Presentaiton
6
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 serveView entire presentation