Acquisitions and Financial Overview
MACRO
INVESTMENT THEMES
CREATING A LEADING "ENERGY
TECHNOLOGY SOLUTIONS" COMPANY
$2,500
12% ORGANIC CAGR
SINCE IPO IN 2010
'92
'94 '96 '98 '00 '02 '04 '06 '08
'10
'12
'14
'16
'18
'20
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.
$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=55M 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 and Texas markets for backup power
increasing significantly
- Represents two largest addressable market opportunities within U.S. for home standby generators
- HSB penetration rates in both states well below national average of -5.0% (CA ~1%, TX ~3%)
- California - numerous power shutoff events impacting millions of customers in an
attempt to mitigate risk of wildfires
- Texas - recent major outage event expected to accelerate demand for backup power
over the next several quarters
Energy Storage & Monitoring Markets Developing Quickly
- New markets focused on energy cost reduction and resiliency
- 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 - low-single digits percentage 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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