Execute. Elevate.
HELIOS TECHNOLOGIES
(NYSE: HLIO)
STIFEL 2024 CROSS SECTOR INSIGHT CONFERENCE
JOSEF MATOSEVIC, PRESIDENT & CEO | SEAN BAGAN, CFO | TANIA ALMOND, VP OF IR & CORP. COMM.
June 4, 2024
SAFE HARBOR STATEMENT
This presentation and oral statements made by management in connection herewith that are not historical facts are "forward‐looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward‐looking statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied by such statements. They include statements regarding current expectations, estimates, forecasts, projections, our beliefs, and assumptions made by Helios Technologies, Inc. ("Helios" or the "Company"), its directors or its officers about the Company and the industry in which it operates, and assumptions made by management, and include among other items, (i) the Company's strategies regarding growth, including its intention to develop new products and make acquisitions; (ii) the effectiveness of creating the Centers of Excellence; (iii) trends affecting the Company's financial condition or results of operations;
- the Company's ability to continue to control costs and to meet its liquidity and other financing needs; (v) the Company's ability to declare and pay dividends; and (vi) the Company's ability to respond to changes in customer demand domestically and internationally, including as a result of the cyclical nature of our business and the standardization. In addition, we may make other written or oral statements, which constitute forward-looking statements, from time to time. Words such as "may," "expects," "projects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," variations of such words, and similar expressions are intended to identify such forward-looking statements. Similarly, statements that describe our future plans, objectives or goals also are forward- looking statements. These statements are not guaranteeing future performance and are subject to a number of risks and uncertainties. Our actual results may differ materially from what is expressed or forecasted in such forward-looking statements, and undue reliance should not be placed on such statements. All forward-looking statements are made as of the date hereof, and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Factors that could cause the actual results to differ materially from what is expressed or forecasted in such forward‐looking statements include, but are not limited to, (i) the Company's ability to respond to global economic trends and changes in customer demand domestically and internationally, including as a result of standardization and the cyclical nature of our business, which can adversely affect the demand for capital goods; (ii) supply chain disruption and the potential inability to procure goods; (iii) conditions in the capital markets, including the interest rate environment and the availability of capital on terms acceptable to us, or at all; (iv) global and regional economic and political conditions, including inflation (or hyperinflation) exchange rates, changes in the cost or availability of energy, transportation, the availability of other necessary supplies and services and recession; (v) changes in the competitive marketplace that could affect the Company's revenue and/or cost bases, such as increased competition, lack of qualified engineering, marketing, management or other personnel, and increased labor and raw materials costs; (vi) risks related to health epidemics, pandemics and similar outbreaks, which may among other things, adversely affect our supply chain, material costs, and work force and may have material adverse effects on our business, financial position, results of operations and/or cash flows; (vii) risks related to our international operations, including the potential impact of the ongoing conflict in Ukraine and the Middle East; (viii) new product introductions, product sales mix and the geographic mix of sales nationally and internationally; and (ix) stakeholders, including regulators, views regarding our environmental, social and governance goals and initiatives, and the impact of factors outside of our control on such goals and initiatives. Further information relating to additional factors that could cause actual results to differ from those anticipated is included but not limited to information under the heading Item 1. "Business" and Item 1A. "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (SEC) on February 27, 2024 as well as any subsequent filing with the SEC.
Helios has presented non-GAAP measures including adjusted operating income, adjusted operating margin, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, net debt-to- adjusted EBITDA, adjusted net income, adjusted net income per diluted share and sales in constant currency. Helios believes that providing these specific Non-GAAP figures are important for investors and other readers of Helios financial statements, as they are used as analytical indicators by Helios management to better understand operating performance. The determination of the amounts that are excluded from these Non-GAAP measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income recognized in a given period. You should not consider the inclusion of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. Please carefully review the Non-GAAP reconciliations to the most directly comparable GAAP measures and the related additional information provided throughout. Because these metrics are Non-GAAP measures and are thus susceptible to varying calculations, these figures, as presented, may not be directly comparable to other similarly titled measures used by other companies.
This presentation also presents forward-looking statements regarding Non-GAAP measures, including adjusted EBITDA, adjusted EBITDA margin, and adjusted net income per diluted share.The Company is unable to present a quantitative reconciliation of these forward-lookingNon-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company's 2024 financial results. These Non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end and year-end adjustments. Any variation between the Company's actual results and preliminary financial data set forth above may be material.
HELIOS TECHNOLOGIES 2
GROWING GLOBAL INDUSRIAL TECHNOLOGY LEADER
Helios Technologies (NYSE: HLIO)
Global leader in highly engineered motion control and electronic controls technology for diverse end markets
- Outsized growth driven by diversification and innovation
- Strong financials with pathway to grow
- Paid consistent quarterly dividends over 27 years
Segments(2) | Geographies(2) | |||
32% | 68% | 21% | 55% | |
APAC | ||||
Electronics | Hydraulics | Americas | ||
24%
EMEA
Financial & Market Data(1,2)
$836M $1.7B
Revenue | Market Cap. |
Market Channels(2)
58%
42% | OEM's |
Distributors |
(1) | Market Capitalization as of May 31, 2024 | HELIOS TECHNOLOGIES | 3 |
(2) | Financial data represents FY2023 | ||
HELIOS BUSINESS SYSTEM
1 | Drive the cash flow engine | 1 | Champion a global operating mindset |
2 | Deliver new products | 2 | Leverage global resources and assets |
3 | Leverage existing products | 3 | Manufacture to support diverse |
end markets |
4 Cultivate customer centricity
4 | Accelerate innovation |
5 | Build in the region, for the region |
1 | Develop and engage global talent | 1 | Diversify end markets |
2 | Embrace diversity and shared values | 2 | Grow wallet share |
3 | Instill a customer-centric culture | 3 | Lead with technology |
4 | Promote a learning organization | 4 | Address white spaces |
5 | Monetize synergies | ||
HELIOS TECHNOLOGIES 4
THINK AND ACT GLOBALLY
Streamlining the Customer Experience Lifecycle
PREVIOUS STATE | ||
Customer | Helios Team | Business Segment |
HYDRAULICS | ||
ELECTRONICS |
CURRENT/FUTURE STATE
New strategy allows for fewer customer contact points and internal efficiencies, resulting in satisfied customers, higher margins, and increased revenue
Integrated | Integrated | |||||
Integrated | ||||||
Sales | Innovation | Manufacturing | ||||
Team | Team | Team | ||||
HELIOS TECHNOLOGIES 5
STRATEGIC INVESTMENTS MADE OVER THE LAST SEVERAL YEARS
1 | 2 | 3 | 4 | 5 | ||||
Product Innovation | ||||||||
Acquisitions | Capacity | Regional Structure | Systems / Software | |||||
Helios continues to be a | Helios is enhancing its | Helios is bringing | Helios is maximizing | Helios is leveraging |
technology, expanding | ~200,000 square feet of | |||
leading innovator | quality and efficiency for | open-source software | ||
end markets, deepening | capacity online to meet | |||
introducing many new | our customers with an | along with its new | ||
geographic reach, | demand from OEMs | |||
products leveraging its | 'In the region for the | patented remote field | ||
adding talent and | and further enable its | |||
strengths across both | region' approach | service platform to | ||
strengthening its global | manufacturing | |||
Hydraulics and | anchored by regional | create a recurring | ||
facility footprint via | capabilities as a | |||
Electronics | Centers of Excellence | revenue stream (SaaS) | ||
acquisitions | competitive advantage | |||
INVESTING TO DRIVE LEVERAGE ACROSS THE TOP AND BOTTOM LINES
HELIOS TECHNOLOGIES 6
OUR CONNECTED FUTURE
Leveraging our position at the intersection of Hydraulics and Electronics to create industry leading sub-system sales
TRANSFORMATION INTO AN INTEGRATED OPERATING COMPANY
HELIOS TECHNOLOGIES 7
HYDRAULICS
OVERVIEW
VIDEO - HYDRAULICS SEGMENT OVERVIEW
Link to Hydraulics Segment Video: Here
HELIOS TECHNOLOGIES 9
HYDRAULICS SEGMENT OVERVIEW
Screw-in hydraulic cartridge | Quick-release hydraulic | Distribution of hydraulic, | ||
valves, electro-hydraulics, | couplings, casting solutions & | pneumatic, filtration, | ||
manifolds, integrated | multi-connection for mobile off- | lubrication and electronic | ||
packages for the industrial & | highway applications | products; system design & | ||
mobile hydraulics markets | installation, servicing & repairs | |||
Our trusted global brands deliver technology solutions that ensure safety, reliability, connectivity & control
HELIOS TECHNOLOGIES 10
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Helios Technologies Inc. published this content on 04 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 June 2024 13:01:08 UTC.