Hubbell Incorporated : 4Q 2022 Earnings Call Presentation

Fourth Quarter 2022 Earnings Call

January 31, 2023

Forward Looking Statements and Non-GAAP Measures

Forward Looking Statements

Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements about expectations regarding our financial results, condition and outlook, anticipated end markets, near-term volume, our ability to continue delivering differentiated results for our shareholders in 2023 and beyond, and all statements, including our projected financial results, set forth in the "Summary & Outlook" section of our earnings press release, as well as other statements that are not strictly historic in nature. In addition, all statements regarding anticipated growth, changes in operating results, market conditions and economic conditions are forward-looking. These statements may be identified by the use of forward-looking words or phrases such as "believe", "expect", "anticipate", "plan", "estimated", "target", "should", "could", "may", "subject to", "continues", "growing", "projected", "if", "potential", "will", "will likely be", and similar words and phrases. Such forward-looking statements are based on our current expectations and involve numerous assumptions, known and unknown risks, uncertainties and other factors which may cause actual and future performance or the Company's achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: business conditions, geopolitical conditions and changes in general economic conditions, such as economic slowdowns, inflation, higher interest rates, recessions, higher energy costs; our ability to offset increases in material and non-material costs through price recovery and volume growth; effects of unfavorable foreign currency exchange rates and the potential use of hedging instruments to hedge the exposure to fluctuating rates of foreign currency exchange on inventory purchases; the lingering impact of the COVID-19 pandemic, including ongoing supply chain issues; the outcome of contingencies or costs compared to amounts provided for such contingencies, including those with respect to pension withdrawal liabilities; achieving sales levels to meet revenue expectations; unexpected costs or charges, certain of which may be outside the Company's control; the effects of trade tariffs, import quotas and other trade restrictions or actions taken by the U.S., U.K., and other countries, including changes in U.S. trade policies; failure to achieve projected levels of efficiencies, cost savings and cost reduction measures, including those expected as a result of our lean initiatives and strategic sourcing plans; regulatory issues, changes in tax laws including multijurisdictional implementation of the Organisation for Economic Co-operation and Development's comprehensive base erosion and profit shifting plan, or changes in geographic profit mix affecting tax rates and availability of tax incentives; general economic and business conditions as well as inflationary trends; the impact of and the ability to complete and integrate strategic acquisitions; the impact of certain divestitures, including the consummation and timing of, and the benefits and costs of, the sale of the Commercial and Industrial Lighting business to GE Current; the ability to effectively develop and introduce new products, expand into new markets and deploy capital; and other factors described in our Securities and Exchange Commission filings, including the "Business", "Risk Factors", "Management's Discussion and Analysis of Financial Condition and Results of Operations", "Forward-Looking Statements" and "Quantitative and Qualitative Disclosures about Market Risk" sections in the Annual Report on Form 10-K for the year ended December 31, 2021 and Quarterly Reports on Form 10-Q.

Non-GAAP Measures

Certain terms used in this presentation, including "Net debt", "Free Cash Flow", "Organic net sales", "Organic net sales growth", "Restructuring-related costs", "EBITDA", and certain "adjusted" measures, are defined under the section entitled "Non-GAAP Definitions." See Appendix, our press releases and SEC filings for more information.

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Key Messages

1 Strong fourth quarter and full year operating performance

2 Attractive markets underpinned by grid modernization and electrification

3	Consistent execution driving favorable Price | Cost | Productivity

4 2023 outlook initiated; portfolio fundamentally well positioned for continued growth

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4Q 2022 Results

$1.22B

Sales

(Organic +10%)

16.0%

Adj. OP Margin

(+210bps y/y)

$2.60

Adj. Diluted EPS

(+26% y/y)

$180M

Free Cash Flow

Strong price realization driving double digit organic growth

Utility Solutions demand strong; orders continue to outpace shipment levels

Significant y/y margin expansion driven by favorable Price | Cost | Productivity

Raw material cost inflation easing; general inflationary and supply chain headwinds persist

Significant operating profit growth

Higher y/y tax rate; lower share count from deployment of C&I lighting proceeds

Invested in high return CapEx to expand capacity and optimize footprint

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4Q 2022 Results

		NET SALES			ADJUSTED OPERATING PROFIT
$ millions		+11%			$ millions			+27%
		1,220					195
	1,100
								16.0%
						153
						13.9%

4Q 20214Q 20224Q 20214Q 2022

		ADJUSTED DILUTED EPS					FREE CASH FLOW
$ per share		+26%			$ millions			-9%
		$2.60
				198	180
	$2.07

4Q 2021

4Q 2022

4Q 2021

4Q 2022

Strong finish to 2022

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