Gardner Denver Q1 2018 Earnings Presentation April 27, 2018 Replay - PowerPoint PPT Presentation

Gardner Denver Q1 2018 Earnings Presentation April 27, 2018

Replay Information ▪ Dial toll-free: +1.877.344.7529 ▪ International: +1.412.317.0088 ▪ Conference ID: #10119481 ▪ Log on to: http://investors.gardnerdenver.com 2

Disclaimer Forward-Looking Statements During the course of this presentation, we may make “forward -looking statements” within the meaning of the US federal securities laws. In fact, all statements made during this presentation other than statements of historical fact are forward-looking statements. Words such as “expects,” “anticipates,” “believes,” “estimates,” “plans,” “intends,” “projects” and “indicates” and variations of such words or similar expressions are intended to identify forward- looking statements. Although they reflect our current expectations, these statements are not guarantees of future performance, and actual results may differ materially from what is expressed in or indicated by these forward- looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements, including those risks and uncertainties described under the section titled “Risk Factors” in our most recent annual report on form 10- K filed with the Securities and Exchange Commission (“SEC”), which risks and uncertainties may be updated from time to time in our periodic filings with the SEC (accessible on the SEC’s website at www.sec.gov). Forward-looking statements speak only as of the date the statements are made. The Company does not undertake to update any forward-looking statements as a result of future developments or new information, except as required by law. Non-GAAP Financial Measures Included in this presentation are certain non-GAAP financial measures designed to supplement, and not substitute, the financial information presented in accordance with generally accepted accounting principles in the United States of America because management believes such measures are useful to investors. The reconciliation of those measures to the most comparable GAAP measures is detailed in the Appendix to this presentation. 3

Agenda ▪ Highlights ▪ Q1 2018 Financial Performance ▪ Segment Highlights ▪ Full Year 2018 Guidance & Summary ▪ Q&A 4

Q1 2018 Highlights Solid performance across all three segments and continued execution of our value-creation strategy • Revenue of $620M, up 29% versus prior year Strong • Adjusted EBITDA of $148M , up 61% versus the prior year Execution • Adjusted EBITDA margin of 23.9% , an improvement of 480 basis points versus prior year Improving • Free cash flow generation of $50M, up $69M versus prior year Leverage • Net debt to Adjusted EBITDA ratio improved to 2.8x … 1.4x turn Profile improvement since the time of the IPO (May 2017) • Favorable 2018 guidance for Adjusted EBITDA increased to $685M to $705M • Outlook Targeting year-end net debt to Adjusted EBITDA ratio of ~2.1X - 2.3X 1 A premier industrial company with leading brands, mission-critical technologies, and diverse end market exposure 5 ¹ Excluding the impact of any potential future acquisitions

Our Strategy Strong Foundation, Clear Strategy, Committed Leadership  Creating a performance driven culture with highly engaged employees Deploy Creating a great place to work – engagement initiative driving improvement – Talent Acting like owners – At IPO, awarded 5.5M shares in equity (~$170M current value) 1 –  Continue to enhance expertise and talent in critical functions  Commercializing new products with new sophisticated Demand Generation process Accelerate  Embedding smart technologies (e.g., iConn) into products Growth  Leveraging investments in emerging markets – “innovation in the region for the region”  Driving Lean Manufacturing across multiple sites… still in early stages with substantial runway of opportunity Expand  Leveraging spend across organization (e.g., freight, sourcing) to generate further savings Margins  Launched Innovate 2 Value (I2V) program in early 2018 to accelerate value engineering initiatives and drive further margin expansion Allocate  Invest in core : new products, new technologies and emerging markets Capital  Reduce leverage : Net Debt-to-Adjusted EBITDA target Effectively  Execute disciplined M&A based on clear strategic and financial criteria 1 Based on stock price as of 3/31/2018 6

Q1 Financial Performance

Q1 2018 Financial Performance ($M, excl. EPS) Adjusted EBITDA 1 Adjusted EPS 1,2 Revenue $0.38 $148 $620 $482 $92 23.9% Margin $0.13 19.1% Margin Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Up 29% Up 61% Up 192% Margin Up 480 bps Q1 2018 Results Reinforce Investment Thesis 1 Adjusted EBITDA and Adjusted EPS include $5.6 million insurance recovery benefit for previously expensed legal defense costs 8 2 Adjusted EPS is defined as adjusted net income divided by adjusted diluted average shares outstanding

Q1 2018 Financial Performance ($M) Working Capital Free Cash Flow 1 Leverage 2 (Op. Working Capital as % of LTM Sales) (Net Debt / LTM Adjusted EBITDA) 4.2x 30.7% $50 29.2% 2.9x 2.8x ($19) Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1'17 Q4'17 Q1'18 Pro-forma IPO Improved 150 bps Up $69M Improved 1.4x Since IPO Strengthening Financial Position Through Increasing FCF and De-leveraging ¹ Free Cash Flow is defined as cash flows from operations less capital expenditures 9 2 Q1 2018 leverage includes the ~$95 million cash consideration paid for Runtech Systems in February 2018

Q1 2018 Segment Performance

Industrials Segment – Q1 Highlights ($M) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $316.9 $248.0 27.8% 18.6% Adjusted EBITDA $66.8 $47.2 41.5% 29.7% Adjusted EBITDA Margin 21.1% 19.0% 210 bps Innovation in Action Highlights:  Orders up 18% as reported; up 10% ex-FX  Revenue up 19% ex-FX  Strong broad based orders growth across all three main product technologies and end markets  Adjusted EBITDA margin up 210 bps benefiting from Cycloblower Variable Helix Series continued progress on operational excellence initiatives World’s first variable helix screw profile for use in blower technology. Unique profile offers unmatched air efficiency versus comparable products, allowing improved performance in applications such as waste water treatment and pneumatic conveying. 11

Energy Segment – Q1 Highlights ($M) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $242.2 $178.3 35.8% 32.6% Adjusted EBITDA $68.0 $38.5 76.6% 74.6% Adjusted EBITDA Margin 28.1% 21.6% 650 bps Innovation in Action Highlights:  Orders up 19% as reported; up 16% ex-FX  Revenue up 33% ex-FX  Upstream revenue up > 50%; mid/downstream up mid-single digits  Upstream orders +21% with strongest growth in original equipment frac pumps and continued penetration of aftermarket consumables Nash Dry-Pro Vacuum Pumps  Adjusted EBITDA margin up 650 bps benefiting from strong Series of engineered dry screw vacuum pumps for use in a variety of process industries; provides effluent- upstream volume growth as well as continued operational free operation, allowing customers to reduce environmental impact and spending on energy and efficiencies waste treatment. 12

Medical Segment – Q1 Highlights ($M) As Prior YOY Ex-FX YOY Reported Year Change Change Revenue $60.5 $55.4 9.2% 1.3% Adjusted EBITDA $15.9 $14.6 8.9% (0.3%) Adjusted EBITDA Margin 26.3% 26.4% (10 bps) Innovation in Action Highlights:  Orders up 19% as reported; up 11% ex-FX  Revenue up 1% ex-FX as design wins and new product penetration leading to positive organic growth  Adjusted EBITDA margin down 10 bps due primarily to revenue mix between gas and liquid pumps Gardner Denver Liquid Diaphragm Pump New platform of liquid handling pumps for use in in-vitro diagnostics, providing higher efficiency and continuous liquid flow even with corrosive or abrasive media. 13

2018 Guidance & Summary

2018 Guidance ▪ Adjusted EBITDA $685M to $705M ▪ Capital Expenditures $65M to $75M ▪ Tax Rate 26% to 28% ▪ Year End Net Debt Leverage 1 ~2.1-2.3x ▪ Average Shares Outstanding 2 ~210M ¹ Excluding the impact of any potential future acquisitions 15 2 Represents the full year computation of weighted average shares outstanding and share price as of 3/31/2018

Summary  Strong broad-based start to 2018 with continued growth and margin expansion  29% revenue growth with strong double-digit growth in Industrials and Energy; organic growth in Medical  Double-digit orders growth across all three segments  480 bps of Adjusted EBITDA margin expansion year-over-year to 23.9%  Leverage reduction to 2.8X  Expecting momentum to continue through balance of 2018  Raising full-year 2018 Adjusted EBITDA guidance  Expecting improved cash flow generation and further reduction to leverage position 1  Continued execution of our value- creation strategy … Deploy Talent, Accelerate Growth, Expand Margins and Allocate Capital Effectively 16 ¹ Excluding the impact of any potential future acquisitions

Q&A

Appendix