Resilient Business Model with Growth Opportunities
Our Core Business: North America Water Heaters & Boilers
- Largest manufacturer and marketer of water heaters and boilers with leading share in both residential and commercial markets
- Significant reoccurring replacement cycle: 80% – 85% of water heater and boiler sales
- Increased focus on energy efficiency and decarbonization provide additional growth opportunities in both boilers and water heaters
Investing and Grow Global Water Treatment
- Growing market with consolidation opportunities
- Omnichannel approach ensures broad market reach
- Global support through sustainability trend and quality of life issues
Expanding Organic Growth in China
- Leading supplier of residential water heaters with more than 25 years of experience
- Growing presence in water treatment (now ~40% of sales) and adding adjacent kitchen appliance business
- Focused on the long-term, supported by trends and innovation through connectivity
Laying the Groundwork in India
- Growing market due to large population with favorable demographics
- Driving growth through innovation, building awareness and expanded distribution
- Long-term growth supported by urbanization, decarbonization and growing demand for clean water
Clear Strategy for Long-Term Value Creation Goals
Revenue
7.2% (5-year CAGR)
Annual growth plus firepower to accelerate growth through strategic acquisitions
Earnings Per Share
14.6%
Adjusted EPS 5-year CAGR
Cash Flow
>100%
Free cash flow conversion
Value-Creating Capital Allocation
Target Leverage: ~1.5x – 2x Net Debt-to-Adjusted EBITDA
Acquisitions that meet financial criteria, pay an attractive dividend, continue share buybacks and ROIC above 30% *
* ROIC defined as ANOPAT divided by average invested capital net of cash