3rd Quarter 2018 Earnings Conference Call October 23, 2018 - PowerPoint PPT Presentation

3rd Quarter 2018 Earnings Conference Call October 23, 2018

Forward-looking statements During this presentation, we make certain forward-looking statements concerning plans and expectations for Carlisle Companies Incorporated. We caution you that actual events or results may differ materially from our plans and expectations. See our Form 10-K for 2017 filed with the Securities and Exchange Commission, these slides and the remarks in the conference call and webcast, the third quarter of 2018 financial results 8-K and release, and our Form 10-Q to be filed for the third quarter of 2018 for risks and uncertainties which could cause actual results to differ materially from current expectations. Non-GAAP financial measures Certain ratios related to our Revolving Credit Facility of Earnings before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”), Free Cash Flow, Net Debt, Net Debt to EBITDA ratio, and Net Debt to Capital Ratio are not measures of liquidity or financial condition under US GAAP. Our Revolving Credit Facility allows us to exclude non-cash impairment charges in the computation of EBITDA. See slide 17 and the appendix to this presentation for a reconciliation of these measures to the most directly comparable GAAP measures. Throughout this presentation each non-GAAP measure is denoted with an *. 4th Quarter 2017 Earnings Call 2

Executing on Vision 2025 Plan • Exceeded organic revenue growth target of 5% YTD • Returned approximately $365M to shareholders through share repurchases and dividends YTD ◦ $295M of share repurchases ◦ $70M of dividends • Executed on CFT margin improvement initiatives driving to ~13% operating margin, excluding gain from sale of a facility in Mexico • Realized COS savings of 1.5% YTD, in line with our targeted 1-2% • Made small but meaningful acquisition in MedTech and are working a robust pipeline of opportunities 4th Quarter 2017 Earnings Call 3

2018 Q3 Highlights • Record Q3 revenue up 17.9% Financial Summary • 5.5% organic revenue growth Q3 '18 Q3 '17 Δ (in millions, except per share amounts) • Strong organic growth at CIT and CBF Revenues $1,181.4 $1,002.4 +17.9% Operating income $140.0 $134.8 +3.9% • 11.7% acquisition growth Income from continuing operations, $96.9 $79.1 +22.5% net of tax • 26.2% increase in EPS from Continuing Diluted EPS from continuing $1.59 $1.26 +26.2% operations Operations Items affecting comparability $0.09 $0.24 -62.5% • Operating income increased 3.9% • Higher volume, price realization, and Solid Organic Sales Despite savings from COS, Record Setting Rainfall • Freight, labor-related, executive Impacting CCM retirement costs offsets 4th Quarter 2017 Earnings Call 4

2018 Q3 Revenue Bridge $1,181.4 +0.1% +11.7% Organic Revenue by Segment Construction Materials +3.2% +0.6% Interconnect Technologies +9.8% +5.5% Fluid Technologies +2.8% Brake & Friction +14.9% $1,002.4 Q3 '17 Organic Revenue Acquisitions FX Q3 '18 Recognition (in millions) 4th Quarter 2017 Earnings Call 5

2018 Q3 Operating Margin Bridge +1.4% -1.4% +1.3% +13.4% -3.5% +0.7% +11.9% Q3 '17 Price/Volume COS Acquisitions Raw Materials/ Restructuring/ Q3 '18 Other Operating Rationalization Costs Costs 4th Quarter 2017 Earnings Call 6

2018 Q3 EPS Bridge +$0.15 -$0.22 +$0.06 +$0.14 -$0.06 -$0.07 +$0.30 -$0.12 $1.59 +$0.15 $1.26 Q3 '17 Volume Tax Items COS Share Price Raw Material, Interest Product Mix Other Q3 '18 Repurchase Freight & Labor Expense Related Costs 4th Quarter 2017 Earnings Call 7

Carlisle Construction Materials Price / Three Months Ended September 30, Acquisition Exchange Volume Effect Rate Effect 2018 2017 Change $ Change % Effect (in millions) $ 776.8 $ 640.2 $ 136.6 21.3 % 18.2% 3.2% (0.1)% Revenues $ 120.9 $ 124.4 $ (3.5) (2.8)% Operating income 15.6% 19.4% -380bps Operating margin percentage $ 1.0 $ 2.8 Items affecting comparability • Q3 Notable Commercial Items: • Wet weather in Texas and Eastern United States limited days on the roof • Metal roofing up 32% • 44% growth in new product sales • Operating Income: • Higher volume, price and COS savings • More than offset by rising raw material, freight, and executive retirement costs • Accella synergies on track • Lingering effects of MDI increases remain 4th Quarter 2017 Earnings Call 8

Carlisle Interconnect Technologies Three Months Ended September 30, Price / Acquisition Exchange Volume Effect Rate Effect 2018 2017 Change $ Change % Effect 1 (in millions) $ $ $ 13.9% 0.3% 12.8% 0.8% 240.2 210.8 29.4 Revenues $ $ $ 13.1% 29.3 25.9 3.4 Operating income 12.2% 12.3% -10bps Operating margin percentage $ $ 2.5 4.2 Items affecting comparability • Q3 Notable Commercial Items: • Aerospace driving growth • Satellite connectivity sales continue on track in 2018 • MedTech and Test & Measurement pipeline strong • Revenue Recognition contributed $6.3M of sales, or 3% • Operating Income: • Higher volume, lower facility rationalization and restructuring costs, and COS • Unfavorable mix and labor-related costs • Revenue Recognition contributed $1.4M of operating income 4th Quarter 2017 Earnings Call 9

Carlisle Fluid Technologies Three Months Ended September 30, Price / Acquisition Exchange Volume Effect Rate Effect 2018 2017 Change $ Change % Effect (in millions) $ $ $ 2.1% —% 2.8% (0.7)% 72.4 70.9 1.5 Revenues $ $ $ 11.6 0.1 11.5 NM Operating income 16.0% 0.1% NM Operating margin percentage $ (2.0) $ 8.1 Items affecting comparability • Q3 Notable Commercial Items: • General Industrial market up double digits • Partially offset by weakness in Transportation and Automotive Refinish markets • Standard product sales up driven by Asia Pacific • Pricing gains of 1.6% • Operating Income: • Excellent operating income performance • Efficiencies gained from our multiple facility rationalization efforts, progress on vertical integration, and COS • Gain from sale of facility in Mexico 4th Quarter 2017 Earnings Call 10

Carlisle Brake & Friction Three Months Ended September 30, Price / Acquisition Exchange Volume Effect Rate Effect 2018 2017 Change $ Change % Effect (in millions) $ $ $ 14.3 % —% 14.9% (0.6)% 92.0 80.5 11.5 Revenues $ (1.1) $ $ (2.4) (184.6)% 1.3 Operating income (1.2)% 1.6% -280bps Operating margin percentage $ $ 4.8 1.0 Items affecting comparability • Q3 Notable Commercial Items: • Construction revenue up 15%, Mining up 32%, Ag up 5% • Pricing up 4.2% • European sales up 8% • Operating Income: • Footprint consolidation drove Operating Loss as expected • Volume, price, and COS positive drivers • Footprint consolidation on-track to be completed by year end 4th Quarter 2017 Earnings Call 11

Restructuring, Facility Rationalization, Acquisition/Divestiture Related Items Q3 2018 Q4 2018 Forecast FY 2018 Forecast ($ in millions) CCM $1.0 ~$0-1 ~$0-1 CIT $2.5 ~$2-3 ~$9-10 CFT $(2.0) ~$0-1 ~$0-1 CBF $4.8 ~$10-12 ~$21-23 CORP $0.8 ~$1-2 ~$3-4 TOTAL OI Pre-Tax $7.1 ~$14-18 ~$33-37 4th Quarter 2017 Earnings Call 12

Focused on Capital Structure Optimization • Cash on hand of $780.5M as of 9/30/18 Debt Maturity Schedule • $1B available under revolver • $70M capital returned YTD to shareholders Senior in quarterly dividends Note • Repurchased $295.4M of shares YTD $600M 3.75% • 4.4M shares remaining under Senior authorization Senior Note Note $400M • Net debt to cap ratio of 23%* $350M Senior 3.5% • Net debt to EBITDA of 0.8x* Note 3.75% $250M • EBITDA to interest of 16.4x* 5.125% 2020 2022 2024 2027 4th Quarter 2017 Earnings Call 13

Cash Flow $175 $125 (in millions) $75 $25 -$25 -$75 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Operating Cash Flow Capital Expenditures Free Cash Flow * Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Operating Cash Flow $164.9 $159.1 $33.2 $(36.0) $105.4 $(39.7) $(54.1) $(42.5) $(24.4) $(29.2) Capital Expenditures $125.2 $105.0 $(9.3) $(60.4) $76.2 Free Cash Flow * The decrease in free cash flow was due to the timing of cash taxes paid related to the sale of Carlisle FoodService Products 4th Quarter 2017 Earnings Call 14 and increased working capital to support revenue growth.

2018 Outlook • Corporate expense ~$75-80M • Total revenue growth from continuing operations high-teens • Depreciation & amortization ~$190M –CCM: up low twenty percent • Capital expenditures ~$120-130M –CIT: up double-digits • Free cash flow conversion ~100%** –CFT: up mid-single digits • Net interest expense ~$55-60M –CBF: up mid-teens • Tax rate ~22-24% • Restructuring, facility rationalization, acquisition/divestiture related items ~$33-37M **Excluding effect of sale of Carlisle FoodService Products 4th Quarter 2017 Earnings Call 15

Appendix 4th Quarter 2017 Earnings Call 16