November 2016
FORWARD LOOKING STATEMENTS Statements made in this presentation or otherwise attributable to the company regarding the company's business which are not historical fact are forward - looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company cautions investors that such statements are estimates of future performance and are highly dependent upon a variety of important factors that could cause actual results to differ materially from such statements. Such factors include, but are not limited to variability in financing costs; quarterly variations in operating results; dependence on key customers; international exposure; foreign exchange and political risks affecting international sales; changing market conditions; the impact of competitive products and pricing; the timely development and market acceptance of the company's products; the availability and cost of raw materials; and other risks detailed herein and from time-to - time in the company's SEC filings. 2
Industry Leading Platforms Commercial Foodservice Synergystic Platforms • 55% of Revenues Industry Leading Brands • 30% EBITDA Margin Technology and Innovation Leaders • $5+ billion market opportunity Cooking and warming experts • 30+ Industry Leading Brands Unique business model Cash Flow and Profitability Food Processing • 15% Revenues • 25% EBITDA Margin SEGMENT SALES SEGMENT EBITDA • $5+ billion market opportunity Residential 20% Residential • 13 Industry Leading Brands 30% Commercial Food Premium Residential Foodservices Processing Commercial 55% 15% • 30% Revenues Foodservices Food 65% Processing • 15% EBITDA Margin 15% • $2+ billion market opportunity • 12+ Industry Leading Brands 4 3
Historical Financial Performance Sales Gross Profit ($ in millions) ($ in millions) 2,205.7 860.9 1,826.6 706.5 1,636.5 640.6 1,428.7 550 1,038.0 403 855.9 344.1 651.9 646.2 719.1 250.6 286.7 248.1 403.1 500.5 192.4 156.9 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2104 2015 2016 Adj. EBITDA (1) EPS ($ in millions) 4.44 506.6 413.0 3.40 3.36 359.1 2.74 296.7 2.20 225.3 1.75 186.0 1.35 142.7 140.4 154.0 1.25 1.10 1.04 106.8 0.85 86.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Consistent Growth in Sales and Profits (1) Adjusted EBITDA 4
International Revenue Growth ($ in millions) 900,000 GEORGRAPHIC SALES 793,300 800,000 Latin America 4% Europe 23% 700,000 600,000 552,000 Asia US and Canada 8% 65% 498,000 500,000 379,000 400,000 327,000 300,000 243,000 200,000 119,500 117,000 140,000 99,000 88,000 100,000 - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Consistent Expansion of International Revenues 5
Free Cash Flow (1) ($ in millions) 234 227 Cash Flow Commentary: 221 • 2016 includes approximately $30 million in funding related to AGA pension and restructuring • 2014 and 2015 includes 132 123 investment in Viking 121 distribution working capital 95 92 81 56 48 41 29 18 17 14 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Consistent Growth in Cash Flow (1) Free Cash Flow = Operating Cash Flow - Capital Expenditures 6
Consistent Capex Spending CAPEX: CAPEX % to Sales 1.40% • Disciplined spending 1.20% • Consistent at < 1.5% of sales 1.00% 0.80% • Significant investments at Viking 0.60% • Refrigeration • Tooling 0.40% 0.20% • Primary uses include: 0.00% • Fabrication equipment 2009 2010 2011 2012 2013 2014 2015 • Tooling • Facility Expansion CAPEX • Efficiency gains and margin expansion 25000 through 22,362 20000 • automation • Insourcing 15000 14,640 13,143 10000 • Significant ability to increase 7,840 7,652 5000 throughput with limited investment 5,730 4,337 469 1,087 1,003 1,199 1,376 2,267 3,311 3,159 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Businesses Require Minimal Capex Spending
Balance Sheet Leverage Net Debt / LTM EBITDA 3.5 • Prudent financial policy 3.0 • Longstanding track record of operating as 2.5 a low-levered entity • Temporary increases in leverage followed 2.0 Q3 2016 by disciplined approach to reduce 1.58x leverage 1.5 1.0 0.5 - Low Leverage Levels Despite Significant Acquisition History 6 8
New Credit Facility • Refinance completed Q3 2016 • 5 year term • $2.5 billion multi-currency revolver • Ability to upsize to $3.0 billion • $833 million in current borrowings • Financial Covenants: • 3.5x net debt/EBITDA (currently 1.6x) • 3.0x interest coverage ratio (currently 23x) • Interest Rate: • Libor +1.50 • Average Rate 2.1% • Approximately 50% of borrowings interest rate hedged Significant Flexibility to Provide for Acquisition Growth
Financial Update – Q3 2016 Organic Sales Growth 2.9%: Q3 YTD Q3 YTD Increase/(Decrease) • Commercial Foodservice +4.9% • Food Processing +11.1% 2016 2015 $ % • Residential -11.8% Sales $ 1,671.0 $ 1,291.9 $ 379.1 29.3% Gross Profit Margins 39.6%: • Commercial: Gross Profit $ 662.0 $ 507.6 $ 154.4 30.4% • 42.3% vs 40.5% Gross Profit Margin 39.6% 39.3% 0.3% • Food Processing: • 39.2% vs 38.5% • Residential: Operating Income $ 319.7 $ 230.0 $ 89.7 39.0% • 35.1% vs 35.8% • AGA impact to overall GM% -1.2% EBITDA $ 388.7 $ 286.6 $ 102.1 35.6% • AGA 33.1% Q3 YTD • 40.8% GM% excluding AGA EBITDA Margin 23.3% 22.2% 1.1% EBITDA Margins 23.3%: • Commercial Foodservice 29.6% • Food Processing 24.9% • Residential 19.1% Significant Growth through Acquisition and Margin Expansion
Financial Update – EBITDA Reconciliation EBITDA Reconciliation Q3 YTD Q3 YTD EBITDA Reconciliation 2016 2015 • -1.5% impact to Operating Income from Non-Cash acquisition Operating Income $ 319.7 $ 230.0 amortization. Reduces over time: Future Amort Depreciation 17.6 13.8 2017 25,992 Amortization 25.9 19.3 2018 18,250 Stock Comp 17.3 11.7 2019 18,995 Restructuring 8.1 11.8 2020 11,371 2021 11,507 EBITDA $ 388.7 $ 286.6 • Depreciation consistent with Capex spending • Stock Compensation 100% performance based tied to EPS and EBITDA growth Significant Non-Cash Costs in Operating Income 11
Commercial Foodservice Commercial Foodservice Comments: Commercial Foodservice • Consistent growth organic and through acquisition 1500 • Margin expansion realized: • Acquisition integration 1000 • Platform synergies • Product Innovation 500 EBITDA 0 • Continued expansion opportunities: 2010 2011 2012 2013 2014 2015 2016 • Acquisition integration • Strategic Sourcing Revenues EBITDA • Leverage contribution margin Q3 LTM 2010 2011 2012 2013 2014 2015 2016 Revenues 611.6 723.3 786.4 895.5 1,041.2 1,121.0 1,210.7 EBITDA 162.8 199.3 214.6 254.7 289.4 316.0 358.4 EBITDA % 26.6% 27.6% 27.3% 28.4% 27.8% 28.2% 29.6% Consistent Growth - Organic and through Acquisition
Commercial Foodservice Organic Growth Commercial Foodservice Comments: Commercial Foodservice Sales Growth • 7.1% organic since 2010 14% • Consistent outpacing industry 12% • Restaurant sales • Competitor sales 10% • 2015 calendar impact 2% 8% 6% • Growth Drivers: • Emerging markets 4% • Emerging chains • Major chain iniitatives 2% • Operations • Menu 0% • Product innovation/share 2010 2011 2012 2013 2014 2015 2016 Average • New category opportunities Growth Consistently Outpacing Industry and GDP
Commercial Foodservice International Growth Commercial Foodservice Comments: International Sales (includes fx impact) • 21.8% average growth since 2010 $450 $400 • Significant International Infrastructure $350 $300 • Investments in Key Growth Markets: • Brazil $250 • India $200 • Russia $150 • China $100 • Dubai $50 • Saudi Arabia • Australia $0 2010 2011 2012 2013 2014 2015 2016 • UK International Markets Continue to Provide Significant Growth Potential
Commercial Foodservice Key Product Opportunities Commercial Foodservice Categories: Approximate Market Size/ Revenues Opportunity • Entry into beverage through recent acquisitions: • Wunderbar Beverage/Ice $ 200 3 Billion • Concordia • Follett Combi-Oven $ 50 1 Billion • Combi-Oven entry into North America • Chain penetration Speed Cook $ 200 ?? • Gas Ovens • Boiler based combi • Speedcook Market Expansion • Turbochef leadership position • Ventless • Speed • Flexibility • Footprint Significant Market Share Opportunities Exist
Commercial Foodservice Industry Growth Commercial Foodservice Industry: • Restaurant sales consistent in growth over 30 years • Only 1 out of 30 years down in nominal growth • Acceleration of growth in other alternative foodservice categories • Convenience Stores • Kiosks • Institutional
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