Thermon Corporate Presentation
Capital Allocation Priorities
Capital Structure
Target 1.5x - 2.0x Net
Debt to Adjusted EBITDA
leverage under normal
conditions
Maintain strong
balance sheet through
the cycle
Prioritize growth while
evaluating potential
return of capital to
shareholders
·
✓
Organic Growth
Drive organic growth
through investment in
people, technology
and continuous
improvement
Target 2% -3% R&D
expense as a percent
of revenue
Strategic Initiatives:
Decarbonization
。 Digitization
o Diversification
+
Inorganic Growth
·
Pursue bolt-on
acquisition opportunities
Build the industrial
process heating
platform
• Expand and diversify
addressable markets
Target EPS accretive in
year 1 with Return on
Invested Capital in
excess of WACC by
Year 3
THERMON
August 2023 | 16View entire presentation