Our Transformation Continues August 2019
Disclosure Regarding Forward-Looking Statements Forward-Looking Statements and Factors That May Affect Future Results: Throughout this presentation, we make a number of “forward -looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. As the words imply, these are statements about future plans, objectives, beliefs, and expectations that might or might not happen in the future, as contrasted with historical information. Forward- looking statements are based on assumptions that we believe are reasonable but by their very nature are subject to a wide range of risks. If our assumptions prove inaccurate or unknown risks and uncertainties materialize, actual results could vary materially from Hillenbrand’s expectations and projections. Accordingly, in this presentation, we may say something like: “We expect that future revenue associated with the Process Equipment Group will be influenced by order backlog. ” That is a forward-looking statement, as indicated by the word “expect” and by the clear meaning of the sentence. Other words that could indicate we are making forward-looking statements include: intend believe plan expect may goal would become pursue estimate will forecast continue could target encourage promise improve progress potential should This is not an exhaustive list, but is intended to give you an idea of how we try to identify forward-looking statements. The absence of any of these words, however, does not mean that the statement is not forward-looking. Here is the key point: Forward-looking statements are not guarantees of future performance, and our actual results could differ materially from what is described in any forward-looking statements. Any number of factors, many of which are beyond our control, could cause our performance to differ significantly from what is described in the forward-looking statements. This includes the impact of the Tax Cuts and Jobs Act (the “Tax Act”) on the Company’s financial position, results of operations, and cash flows. For a discussion of factors that could cause actual results to differ from those contained in forward- looking statements, see the discussions under the heading “Risk Factors” in Item 1A of Part I of our Form 10- K for the year ended September 30, 2018, and in Item 1A of Part II of the company’s Form 10 -Q for the quarter ended June 30, 2019. We assume no obligation to update or revise any forward-looking statements. 2 | Investor Presentation
Company Overview & Strategy 3
Key Takeaways Significant strides made transforming Hillenbrand into a global diversified 1 industrial company Market leadership driven by highly-engineered products with core technologies 2 differentiated by applications expertise The Hillenbrand Operating Model (HOM) is a competitive differentiator; historically 3 focused on margin expansion and now adding tools to drive profitable growth Now focused on building platforms to develop scale and enhance leadership 4 positions to drive profitable growth Flexible balance sheet supported by strong cash flow and appropriate debt level; 5 expect to make additional strategic acquisitions to accelerate profitable growth Passionate leadership team driving transformation with runway for significant 6 shareholder value creation 4 | Investor Presentation
Hillenbrand at a Glance REVENUE BY SEGMENT ADJUSTED REVENUE Global EBITDA MARGIN 1 16.6% $1.8B Diversified 31% PEG Industrial Batesville Company that 69% Engineers, MARKET CAP DIVIDEND YIELD Manufactures, 1.6% $3.3B REVENUE BY GEOGRAPHY 2 and Sells Products and 20% Services into Americas LOCATIONS 3 EMPLOYEES a Variety of EMEA 22% 58% End Markets 40 Asia ~6,500 All data as of 9/30/18 1 Adjusted EBITDA Margin is a Non-GAAP measure. See appendix for reconciliation. 2 Company estimate. 3 Includes headquarters, significant manufacturing and sales & technical locations. 5 | Investor Presentation
We Have Made Significant Strides Over the Past Six Years Where We Were: 2012 1 Where We Are: 2018 2 IMPACT 2 Segments – Batesville & 2 Segments – Batesville & Portfolio Process Equipment Group Process Equipment Group More diverse 3 6 Businesses platform 10+ 40+ Countries $1.0B $1.8B +80% Total Revenue Adjusted EBITDA 3 $207M $294M +42% 3,900 6,500 > 1.5x Employees $1.1B $3.3B +186% Market Cap Free Cash Flow 3 $117M $221M +89% Transformed Portfolio; Now Focused on Leveraging Industrial Platform for Profitable Growth 1 Data as of 9/30/12. 6 2 Data as of 9/30/18. | Investor Presentation 3 Adjusted EBITDA and Free Cash Flow are Non-GAAP measures. See appendix for reconciliation.
Hillenbrand Strategy to Create Shareholder Value 2 1 Accelerate Grow Organically Profitable Growth through Four Key with Disciplined Imperatives M&A 3 4 Leverage HOM to Effectively Deploy Drive Profitable Strong Free Cash Growth Flow Passionate Management Team Executing Strategy for Sustained Profitable Growth 7 | Investor Presentation
Strategic Priorities • Leverage core technologies and applications expertise to build leadership positions Grow Organically • Deepen customer engagement and revenue potential through Four Key • Target broad installed base and pursue new opportunities to grow recurring revenue Imperatives • Take advantage of strong geographic footprint to expand customer base and win in new markets • Accelerate Strengthen existing leadership positions and build targeted platforms in food & pharma, separation Profitable Growth and flow control with Disciplined • Disciplined approach to deal pipeline from a strategic, operational, and financial perspective M&A • Operational excellence demonstrated by consistent margin expansion; adding tools to further drive Leverage HOM to profitable growth Drive Profitable • Early in operational excellence journey Growth • Key areas of focus: Innovation, Lean, Procurement, and Business Simplification • Reinvest in the business through new product development and expand into new end markets Effectively Deploy and geographies Strong Free Cash • Invest in targeted acquisitions with compelling financial returns and profitable growth potential Flow • Return cash to shareholders through consistent dividends and opportunistic share repurchases 8 | Investor Presentation
Hillenbrand Operating Model: A Competitive Advantage Consistent and Repeatable Framework Designed to Produce Efficient Processes and Drive Profitable Growth and Superior Value UNDERSTAND THE BUSINESS FOCUS ON THE CRITICAL FEW GROW: GET BIGGER AND BETTER Have Realized Benefits but Significant Opportunity Ahead of Us 9 | Investor Presentation
Focus Areas for Creating Value through HOM Business Simplification Rapid Response Procurement Growth • • • • Enterprise-wide process Active footprint management Lead time as a competitive Expand applications and optimization and advantage systems expertise to • Global Business Services standardization adjacent end markets operating with standard • Manage global • Supply-base rationalization processes supporting the • manufacturing and Expand service business enterprise engineering capacities to geographically • Strategic supplier improve efficiency relationships for improved • Unified approach to identify • Enhance innovation and new cost, quality, and working customer needs and provide • Strategic supplier product development capital efficiency complete solutions relationships to manage • Develop framework to win in • Value engineering to reduce demand fluctuations and • Information Technology China cost and improve changing customer needs systems rationalization manufacturability Expected Annual Improved Operating Above-Market Growth Above-Market Growth Savings of $40 - $50M Leverage Innovation Lean Strategy/SDP Lean Segmentation Lean Strategy/SDP Acquisition Toolkit 10 | Investor Presentation
Process Equipment Group 11
Process Equipment Group at a Glance REVENUE BY END MARKET 1 REVENUE BY GEOGRAPHY 1 PERFORMANCE ($M) $1,300 35% $1,220 5% 7% 30% $1,100 $1,028 6% 25% $993 29% $965 39% 20% 12% $900 17.7% 17.3% 61% 15% 16.7% 16.2% 9% 10% $700 32% 5% Plastics Chemicals $500 0% FY 15 FY 16 FY 17 FY 18 Minerals & Mining Food & Pharma 2 Americas EMEA Asia Revenue Adj. EBITDA Margin Water/Wastewater Other HOM Drives Strong Profit Margin and Free Cash Flow 1 Based on FY 2018 sales; company estimate. 12 2 Adjusted EBITDA Margin is a Non-GAAP measure. See appendix for reconciliation. | Investor Presentation
Diverse Brands with Significant Scale in Plastics Products: Separation Products: Flow Control Products: Size Reduction Products: • Compounders and extruders • Screening equipment • Pumping solutions • Crushers PRODUCT • Material handling equipment • Sizing equipment • Highly-engineered valves • Material handling equipment PORTFOLIO • Feeders, components, and • Parts & service • Parts & service • Parts & service system solutions • Parts & service • Polyolefins • Minerals & Fertilizers • Municipal Water and • Coal Power & Mining Wastewater • Engineered Plastics • Food & Agriculture • Forest Products END • Industrial Water and • Chemicals • Proppants • Steel MARKETS Wastewater • Processed Food & Pharma PORTION OF PEG REVENUE 1 1 Based on FY 2018 sales. 13 | Investor Presentation
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