Driving Growth and Transformation in Agriculture Technology slide image

Driving Growth and Transformation in Agriculture Technology

Robust Free Cash Flow Generation Supports Value Creation $210 2019 Free Cash Flow¹ ($M) $210 2020 Proactive inventory management to support growing customer demand and mitigate supply chain disruptions created temporary cash outflow $(42) $233 2021 2022 Historical FCF Conversion by Year 1 149% Continuing to + Drive Cash Generation • Focused on cash conversion cycle Digital Business Platforms & automation driving working capital reduction Lower working capital intensity driven by Grow and Transform initiatives Operational excellence and lean manufacturing driving supply chain and inventory optimization Disciplined, process-oriented approach to business investments GAAP 144% Adj. N/A 131% (21%) 93% (19%) 82% CONSERVING RESOURCES. IMPROVING LIFE: Valmont 1 We use the non-GAAP measure of FCF, which we define as GAAP net cash flows from operating activities reduced by capex. We believe that FCF is a useful performance measure for management and useful to investors as the basis for comparing our performance with other companies. Our measure of FCF may not be directly comparable to similar measure use by other companies. Please see Reg G reconciliation to GAAP measures at the end of document. 86
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