Fourth Quarter 2019 Earnings Conference Call February 4, 2020 Forward Looking Statements Certain statements contained in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "outlook", "expected", "projected", "scheduled", "could", "believe", "anticipated", "target", "should", "on track" and others, and include statements regarding our e ...

Back to Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number 1-2958 HUBBELL INCORPORATED (Exact name of registrant as specified in its charter) Connecticut ...

Hubbell Incorporated (NYSE:HUBB) Q3 2019 Earnings Conference Call October 29, 2019 10:00 AM ET Company Participants Dan Innamorato - Investor Relations Dave Nord - Chairman and CEO Bill Sperry - EVP and CFO Conference Call Participants Christopher Glynn - Oppenheimer Deepa Raghavan - Wells Fargo Securities Michael Metz - Wolfe Research Justin Bergner - G. Research Steve Tusa - JPMorgan Operator Ladies and Gentlemen, thank you for standing by. And welcome to the Third Quarter 2019 Results Call. [Operator Ins ...

PART I FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201%20Financial%20Statements) Unaudited statements for H1 2019 show a 6% net sales increase to $2.28 billion and improved operating cash flow [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (unaudited) | (in millions, except per share amounts) | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $1,196.4 | $1,166.7 | $2,283.7 | $2,157.9 | | **Gross profit** | $357.4 | $347.9 | $664.7 | $630.8 | | **Operating income** | $166.9 | $156.9 | $287.8 | $256.5 | | **Income before income taxes** | $123.6 | $134.0 | $221.6 | $209.8 | | **Net income attributable to Hubbell** | $96.0 | $100.3 | $168.3 | $158.6 | | **Diluted Earnings per share** | $1.75 | $1.82 | $3.07 | $2.87 | - For the six months ended June 30, 2019, net sales increased by **5.8% YoY to $2,283.7 million**, and operating income grew by **12.2% YoY to $287.8 million**; however, a **$22.9 million multi-employer pension charge** was recorded in Q2 2019, impacting income before taxes[6](index=6&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income (unaudited) | (in millions) | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $97.9 | $102.4 | $171.7 | $162.2 | | **Other comprehensive income (loss)** | ($2.3) | ($27.8) | $6.0 | ($15.7) | | **Total comprehensive income** | $95.6 | $74.6 | $177.7 | $146.5 | | **Comprehensive income attributable to Hubbell** | $93.7 | $72.5 | $174.3 | $142.9 | - For the six months ended June 30, 2019, Other Comprehensive Income was **$6.0 million**, a significant improvement from a loss of **($15.7) million** in the prior-year period, primarily driven by positive foreign currency translation adjustments[9](index=9&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (unaudited) | (in millions) | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Current Assets** | $1,729.0 | $1,643.7 | | **Goodwill** | $1,784.9 | $1,784.4 | | **Intangible assets, net** | $783.8 | $819.5 | | **TOTAL ASSETS** | $5,036.0 | $4,872.1 | | **Total Current Liabilities** | $874.1 | $839.3 | | **Long-Term Debt** | $1,722.8 | $1,737.1 | | **TOTAL LIABILITIES** | $3,181.0 | $3,073.2 | | **Total Hubbell Shareholders' Equity** | $1,835.9 | $1,780.6 | | **TOTAL LIABILITIES AND EQUITY** | $5,036.0 | $4,872.1 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (unaudited) | (in millions) | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $209.6 | $152.3 | | **Net cash used in investing activities** | ($41.5) | ($1,155.1) | | **Net cash (used) provided by financing activities** | ($148.2) | $826.3 | | **Increase (decrease) in cash and cash equivalents** | $20.9 | ($179.9) | | **Cash and cash equivalents, end of period** | $209.9 | $195.1 | - Net cash from operating activities increased by **$57.3 million YoY**, mainly due to better management of accounts receivable; investing activities cash usage decreased significantly as the prior year included the **$1.1 billion Aclara acquisition**[13](index=13&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company adopted the new lease accounting standard (ASU 2016-02) on January 1, 2019, recognizing right-of-use (ROU) assets and lease liabilities of **$109.3 million** upon adoption[16](index=16&type=chunk)[17](index=17&type=chunk) - In Q2 2019, the company recorded an additional charge of **$22.9 million** related to a probable mass withdrawal liability from a multi-employer pension plan[88](index=88&type=chunk) - As of June 30, 2019, the company had approximately **$425 million** of unsatisfied performance obligations for long-term contracts, primarily within the Power segment[34](index=34&type=chunk) - The company completed the acquisition of Aclara Technologies for approximately **$1.1 billion** on February 2, 2018, which has been integrated into the Power segment[36](index=36&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a 3% Q2 net sales increase driven by pricing, with solid H1 results and improved operating cash flow [Executive Overview of the Business](index=29&type=section&id=Executive%20Overview%20of%20the%20Business) - The company's long-term strategy focuses on serving customers with innovative electrical solutions, complementing organic growth with strategic acquisitions, and effective capital allocation[100](index=100&type=chunk) - Hubbell continues to pursue restructuring activities, including facility consolidation and workforce actions, to optimize its manufacturing footprint and cost structure[102](index=102&type=chunk) - Productivity improvement is a key focus, with programs aimed at offsetting material and other inflationary cost increases through value engineering and global sourcing[103](index=103&type=chunk)[104](index=104&type=chunk) [Results of Operations – Second Quarter of 2019 compared to the Second Quarter of 2018](index=30&type=section&id=Results%20of%20Operations%20%E2%80%93%20Second%20Quarter%20of%202019%20compared%20to%20the%20Second%20Quarter%20of%202018) Q2 2019 vs Q2 2018 Performance Summary | Metric | Q2 2019 | Q2 2018 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $1,196.4M | $1,166.7M | +2.5% | | **Operating Income** | $166.9M | $156.9M | +6.4% | | **Net Income (Hubbell)** | $96.0M | $100.3M | -4.3% | | **Diluted EPS** | $1.75 | $1.82 | -3.8% | | **Adjusted Diluted EPS** | $2.31 | $2.09 | +10.5% | - Q2 2019 net sales increased **3%** due to favorable price realization; net income decreased due to a **$22.9 million pre-tax charge** for a multi-employer pension plan withdrawal[113](index=113&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk) - The Electrical segment's net sales were **flat at $688.2 million**, with organic growth offset by foreign exchange headwinds; operating margin decreased by **50 bps to 12.8%**[120](index=120&type=chunk)[122](index=122&type=chunk) - The Power segment's net sales grew **6% to $508.2 million**, driven by strong organic growth in transmission and distribution markets; adjusted operating margin increased by **150 bps to 18.0%**[123](index=123&type=chunk)[124](index=124&type=chunk) [Results of Operations – Six Months Ended June 30, 2019 compared to the Six Months Ended June 30, 2018](index=33&type=section&id=Results%20of%20Operations%20%E2%80%93%20Six%20Months%20Ended%20June%2030%2C%202019%20compared%20to%20the%20Six%20Months%20Ended%20June%2030%2C%202018) H1 2019 vs H1 2018 Performance Summary | Metric | H1 2019 | H1 2018 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $2,283.7M | $2,157.9M | +5.8% | | **Operating Income** | $287.8M | $256.5M | +12.2% | | **Net Income (Hubbell)** | $168.3M | $158.6M | +6.1% | | **Diluted EPS** | $3.07 | $2.87 | +7.0% | | **Adjusted Diluted EPS** | $3.87 | $3.60 | +7.5% | - First-half 2019 net sales increased **6%**, driven by **4 percentage points of organic growth** and **2 percentage points from the Aclara acquisition**[127](index=127&type=chunk) - The Electrical segment's H1 net sales grew **1% to $1.32 billion**, with adjusted operating margin slightly up by **10 bps to 12.7%**[134](index=134&type=chunk)[136](index=136&type=chunk) - The Power segment's H1 net sales grew **13% to $965.3 million**, driven by organic volume and the Aclara acquisition; adjusted operating margin decreased by **50 bps to 16.2%**[137](index=137&type=chunk)[138](index=138&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=37&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) Cash Flow Summary (Six Months Ended June 30) | (In millions) | 2019 | 2018 | | :--- | :--- | :--- | | **Operating activities** | $209.6 | $152.3 | | **Investing activities** | ($41.5) | ($1,155.1) | | **Financing activities** | ($148.2) | $826.3 | Capital Structure | (In millions) | June 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Total Debt** | $1,777.0 | $1,793.2 | | **Total Hubbell Shareholders' Equity** | $1,835.9 | $1,780.6 | | **Total Debt to Total Capital** | 49% | 50% | - The company has a **$400 million stock repurchase program** authorized in October 2017; as of June 30, 2019, **$330 million remained available** for repurchase[150](index=150&type=chunk) - Primary sources of liquidity include cash from operations, a **$750 million revolving credit facility**, a commercial paper program, and access to long-term debt markets[163](index=163&type=chunk)[165](index=165&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=ITEM%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no significant changes in its exposure to market risks during the first six months of 2019 - There have been **no significant changes** in the Company's exposure to market risks, such as fluctuating foreign currency exchange rates, material prices, and interest rates, during the first six months of 2019[168](index=168&type=chunk) [Controls and Procedures](index=42&type=section&id=ITEM%204%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2019 - Based on an evaluation as of June 30, 2019, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were **effective at the reasonable assurance level**[170](index=170&type=chunk) - **No material changes** in the Company's internal control over financial reporting occurred during the most recently completed quarter[171](index=171&type=chunk) PART II OTHER INFORMATION [Risk Factors](index=43&type=section&id=ITEM%201A%20Risk%20Factors) No material changes to risk factors from the 2018 Annual Report on Form 10-K are reported - There have been **no material changes** in the Company's risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2018[173](index=173&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=ITEM%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased $30.0 million of shares in H1 2019, with $330.0 million remaining under its authorization - Under the October 2017 stock repurchase program, the company repurchased shares for an aggregate price of approximately **$30.0 million** in the first six months of 2019[174](index=174&type=chunk) Issuer Purchases of Equity Securities (Q2 2019) | Period | Total Number of Shares Purchased (000's) | Average Price Paid per share | Approximate Value of Shares that May Yet Be Purchased (in millions) | | :--- | :--- | :--- | :--- | | **April 2019** | — | $ — | $350.0 | | **May 2019** | 165 | $121.09 | $330.0 | | **June 2019** | — | $ — | $330.0 | [Exhibits](index=44&type=section&id=ITEM%206%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibits filed with this report include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL interactive data files[178](index=178&type=chunk) [Signatures](index=45&type=section&id=Signatures) The report was duly signed and authorized by senior financial officers on July 31, 2019 - The Form 10-Q was signed on **July 31, 2019**, by the company's Chief Financial Officer and Principal Accounting Officer[179](index=179&type=chunk)

Back to Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number 1-2958 HUBBELL INCORPORATED (Exact name of registrant as specified in its charter) STATE OF CONNECT ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-2958 HUBBELL INCORPORATED (Exact name of registrant as specified in its charter) STATE OF CONNECTICUT 06-0397030 (State or other jurisdiction of incorporation or organization) (I.R.S. E ...