Creating a better tomorrow™… Louis Pinkham, Chief Executive Officer Rob Rehard, Executive Vice President, Chief Financial Officer 4Q 2023 FORWARD LOOKING STATEMENTS 4Q 2023 In addition to these non-GAAP measures, we use the term "organic sales growth" and "pro forma organic sales growth" to refer to the increase in our sales between periods that is attributable to organic sales. "Organic sales" refers to GAAP sales from existing operations excluding any sales from acquired businesses recorded prior to the f ...

Financial Data and Key Metrics Changes - The company reported adjusted diluted earnings per share of $2.28 for Q4 2023, aligning with guidance midpoint [29] - Adjusted free cash flow for the year reached $683 million, nearly double the previous year, with Q4 free cash flow at $171 million [47][70] - Adjusted gross margins increased by 150 basis points year-over-year, while adjusted EBITDA margins on a pro forma basis were down 10 basis points [47][31] Business Line Data and Key Metrics Changes - The Automation and Motion Control (AMC) segment saw organic sales decline by 3% in Q4, with strength in aerospace and medical markets offset by weakness in food and beverage [67] - Power Efficiency Solutions (PES) organic sales were down 16% in Q4, primarily due to channel destocking and weaker demand in the North American residential furnace market [38][69] - Industrial Powertrain Solutions (IPS) experienced a 1.5% decline in organic sales in Q4, with growth driven by aerospace energy markets [55] Market Data and Key Metrics Changes - The residential HVAC market is expected to face headwinds, with a projected decline of 15% to 20% in Q1 2024 [23] - Orders in the PES segment were down nearly 10% on a daily basis in Q4, but January showed a book-to-bill ratio of 1.2, indicating potential improvement [56] - The company anticipates a low single-digit decline in sales for the IPS segment in Q1, with flat margins expected [41] Company Strategy and Development Direction - The company aims to achieve $90 million in synergies in 2024, building on the $65 million achieved in 2023 [62] - Focus on driving free cash flow of at least $700 million in 2024, which will be used to reduce debt and shift capital structure towards equity [64] - The company is committed to advancing organic growth initiatives, particularly through a pipeline of differentiated new product launches [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 25% EBITDA margin by 2025, with a projected margin of 22% in 2024 [2] - The operating environment remains challenging due to market volatility and destocking dynamics, leading to a conservative outlook for 2024 [64] - Management noted that while January showed some improvement, it is too early to confirm a trend, and they are planning for mid-single-digit declines in orders [103] Other Important Information - The company ended Q4 with total debt of $6.38 billion, down $117 million from the previous quarter, and net debt to pro forma adjusted EBITDA ratio is now 3.8 [39] - The company is undergoing a significant portfolio transformation, including the acquisition of Altra and the planned sale of its motors and generators businesses [30] Q&A Session Summary Question: What has changed in the company's outlook over the last three months? - Management indicated that while there were strong performances in Q4, particularly in IPS, challenges in the residential HVAC market have led to a more conservative outlook for 2024 [23] Question: Can you elaborate on the assumptions around the residential HVAC market? - Management noted that the market remains murky, with destocking pressures extending into 2024, leading to a cautious approach in forecasting [12] Question: What are the expectations for the factory automation segment? - Management highlighted that while orders improved sequentially, they do not expect year-over-year growth until later in 2024 [25] Question: How does the company plan to manage potential strains as it drives growth? - Management emphasized the importance of communication and planning to address challenges, ensuring alignment with company values [98] Question: What are the key variables affecting demand and revenue as the company moves into Q2? - Management identified general industrial and residential HVAC markets as key areas to watch for potential improvements in demand [96]

Regal Rexnord Corporation (NYSE:RRX) Q3 2023 Earnings Conference Call November 2, 2023 10:00 AM ET Company Participants Robert Barry – Vice President-Investor Relations Louis Pinkham – Chief Executive Officer Rob Rehard – Chief Financial Officer Conference Call Participants Mike Halloran – Baird Julian Mitchell – Barclays Jeff Hammond – KeyBanc Capital Markets Nigel Coe – Wolfe Research Christopher Glynn – Oppenheimer Operator Good morning, and welcome to the Regal Rexnord Third Quarter 2023 Earnings Call. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-07283 REGAL REXNORD CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 39-0875718 (State or other jurisdiction of incorporation) (IRS Employer ...

Creating a better tomorrow™… Third Quarter 2023 Earnings November 2, 2023 Industrial NON-GAAP FINANCIAL MEASURES We prepare financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We also periodically disclose certain financial measures in our quarterly earnings releases, on investor conference calls, and in investor presentations and similar events that may be considered "non-GAAP" financial measures. This additional information is not mean ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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 June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-07283 REGAL REXNORD CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 39-0875718 (State or other jurisdiction of incorporation) (IRS Employer Ident ...

Regal Rexnord Corporation (NYSE:RRX) Q2 2023 Results Conference Call August 1, 2023 10:00 AM ET Company Participants Robert Barry - Vice President, Investor Relations Louis Pinkham - Chief Executive Officer Rob Rehard - Executive Vice President and CFO Conference Call Participants Mike Halloran - Baird Julian Mitchell - Barclays Christopher Glynn - Oppenheimer Nigel Coe - Wolfe Research Walter Liptak - Seaport Jeff Hammond - KeyBanc Capital Markets Operator Good morning, and welcome to the Regal Rexnord Cor ...

[PART I — FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the first quarter of 2023 [Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201%20%E2%80%94%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) For Q1 2023, Regal Rexnord reported a net loss of $5.9 million, a significant decline from the prior year, driven by decreased sales and increased expenses due to the Altra acquisition, which also expanded the balance sheet with increased assets and debt [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The company reported a net loss of $5.9 million in Q1 2023, a significant decrease from $125.6 million net income in Q1 2022, primarily due to higher interest expenses Condensed Consolidated Statements of Income (Q1 2023 vs Q1 2022) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Net Sales** | $1,224.1 M | $1,298.5 M | | **Gross Profit** | $398.1 M | $421.9 M | | **Income from Operations** | $68.9 M | $169.9 M | | **Income before Taxes** | $6.8 M | $163.3 M | | **Net (Loss) Income Attributable to Regal Rexnord** | $(5.9) M | $125.6 M | | **(Loss) Earnings Per Share (Diluted)** | $(0.09) | $1.85 | - Interest expense increased significantly to **$95.4 million** in Q1 2023 from **$9.0 million** in Q1 2022, largely due to financing for the Altra acquisition[13](index=13&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $16.5 billion from $10.3 billion, and long-term debt rose to $7.2 billion, primarily due to the Altra acquisition Key Balance Sheet Items (As of March 31, 2023 vs Dec 31, 2022) | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $4,109.1 M | $3,000.5 M | | **Goodwill** | $6,526.7 M | $4,018.8 M | | **Intangible Assets, Net** | $4,414.6 M | $2,229.9 M | | **Total Assets** | $16,547.4 M | $10,268.9 M | | **Long-Term Debt** | $7,210.6 M | $1,989.7 M | | **Total Equity** | $6,455.7 M | $6,422.6 M | - The significant increase in assets, goodwill, intangible assets, and long-term debt is primarily attributable to the acquisition of Altra Industrial Motion Corp. in March 2023[17](index=17&type=chunk)[39](index=39&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow improved to $106.2 million, while investing activities saw a $4.87 billion outflow and financing activities a $5.2 billion inflow, both driven by the Altra acquisition Cash Flow Summary (Q1 2023 vs Q1 2022) | Cash Flow Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Net Cash Provided by (Used in) Operating Activities** | $106.2 M | $(5.9) M | | **Net Cash Used in Investing Activities** | $(4,865.5) M | $(47.0) M | | **Net Cash Provided By Financing Activities** | $5,203.6 M | $3.7 M | | **Net Increase (Decrease) in Cash** | $454.8 M | $(48.1) M | - Cash used in investing activities surged to **$4.87 billion**, primarily due to **$4.85 billion** spent on business acquisitions, net of cash acquired, reflecting the Altra transaction[22](index=22&type=chunk) - Cash from financing activities was **$5.2 billion**, driven by proceeds from long-term borrowings of **$5.53 billion** used to fund the Altra acquisition[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The company realigned its operating segments and completed the Altra Industrial Motion Corp. acquisition for approximately $5.1 billion, financed by $4.7 billion in Senior Notes and an upsized Term Loan - Effective Q1 2023, in conjunction with the Altra acquisition, the company realigned its operating segments into: Industrial Powertrain Solutions (IPS), Power Efficiency Solutions (PES), Automation & Motion Control (AMC), and Industrial Systems; prior period information has been reclassified accordingly[28](index=28&type=chunk) - On March 27, 2023, the company completed its acquisition of Altra Industrial Motion Corp. for a preliminary purchase price of approximately **$5.1 billion**[39](index=39&type=chunk)[42](index=42&type=chunk) - To finance the Altra transaction, the company issued **$4.7 billion** in Senior Notes in January 2023 and upsized its Term Loan facility by **$840.0 million** in March 2023[79](index=79&type=chunk)[84](index=84&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202%20%E2%80%94%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales decreased by 5.7% in Q1 2023 due to organic declines and currency effects, with varied segment performance and significant acquisition-related costs impacting operating income [Overview and Segment Realignment](index=32&type=section&id=Overview%20and%20Segment%20Realignment) The company realigned its business into four new operating segments following the Altra acquisition and is considering strategic alternatives for its Industrial Systems segment - Following the Altra acquisition, the company realigned its business into four new operating segments: Industrial Powertrain Solutions (IPS), Power Efficiency Solutions (PES), Automation & Motion Control (AMC), and Industrial Systems[131](index=131&type=chunk) - The company is currently considering a full range of strategic alternatives for its Industrial Systems operating segment, which may or may not lead to a divestiture[132](index=132&type=chunk) [Altra Transaction and 2023 Outlook](index=35&type=section&id=Altra%20Transaction%20and%202023%20Outlook) The Altra acquisition was completed in March 2023, and the company anticipates a low single-digit organic sales decline for 2023, with synergies offset by headwinds - The acquisition of Altra Industrial Motion Corp. was completed on March 27, 2023, making Altra a wholly owned subsidiary[144](index=144&type=chunk) - For 2023, the company expects a **low single-digit percentage decline** in organic sales; benefits from synergies and productivity initiatives are expected to be more than offset by headwinds from lower volumes, inflation, and higher interest and tax expenses[146](index=146&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Consolidated net sales decreased by 5.7% in Q1 2023, with operating expenses rising due to acquisition costs and the effective tax rate significantly increasing - Consolidated net sales decreased by **5.7%** to **$1,224.1 million** in Q1 2023, comprising a **4.1% decline** in organic sales and a **1.6% negative impact** from foreign currency translation[149](index=149&type=chunk) Segment Net Sales (Q1 2023 vs Q1 2022) | Segment | Q1 2023 Net Sales | Q1 2022 Net Sales | % Change | | :--- | :--- | :--- | :--- | | Industrial Powertrain Solutions | $414.4 M | $416.3 M | -0.5% | | Power Efficiency Solutions | $469.5 M | $567.2 M | -17.2% | | Automation & Motion Control | $203.2 M | $184.3 M | +10.3% | | Industrial Systems | $137.0 M | $130.7 M | +4.8% | - Operating expenses increased by **30.6%** to **$77.2 million**, primarily due to higher acquisition costs from the Altra Transaction and increased employee compensation[150](index=150&type=chunk) - The effective tax rate rose to **180.9%** in Q1 2023 from **22.2%** in Q1 2022, mainly due to non-deductible transaction costs associated with the Altra acquisition[155](index=155&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow improved to $106.2 million, while net debt borrowings of $5.28 billion primarily funded the Altra acquisition, with $870.0 million available under the revolving facility - Cash flow from operating activities increased to **$106.2 million** for Q1 2023, up from a use of **$5.9 million** in Q1 2022, driven by improvements in working capital[159](index=159&type=chunk) - Net debt borrowings were **$5.28 billion** in Q1 2023, primarily to fund the Altra acquisition, including the issuance of **$4.7 billion** in Senior Notes[162](index=162&type=chunk) - As of March 31, 2023, the company had **$870.0 million** of available borrowing capacity under its Multicurrency Revolving Facility[168](index=168&type=chunk) - The company anticipates capital spending of approximately **$150 million** in fiscal 2023, to be funded by operating cash flows[161](index=161&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate, foreign currency, and commodity price risks using derivatives, with $2.5 billion in variable rate debt and significant notional amounts in foreign currency and commodity hedges - The company manages market risks related to interest rates, foreign currency, and commodity prices through derivative financial instruments, including swaps and forward contracts[171](index=171&type=chunk) - As of March 31, 2023, the company had **$2,545.8 million** of variable rate debt; a hypothetical **10% change** in the weighted average borrowing rate would change after-tax annualized earnings by **$14.7 million**[173](index=173&type=chunk)[174](index=174&type=chunk) - The company uses foreign currency forward contracts to hedge forecasted transactions; outstanding contracts as of March 31, 2023, had notional amounts of **$251.4 million** (CNY), **$189.1 million** (MXN), and **$342.3 million** (EUR), among others[113](index=113&type=chunk)[179](index=179&type=chunk) - Commodity hedging is used for materials like copper and aluminum; as of March 31, 2023, outstanding copper forward contracts had a notional value of **$67.4 million**[113](index=113&type=chunk)[182](index=182&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204%20%E2%80%94%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of March 31, 2023, with no material changes to internal controls, and Altra's operations are being integrated into the control framework - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report (March 31, 2023)[185](index=185&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[186](index=186&type=chunk) - The company is actively incorporating its controls and procedures into the newly acquired Altra operations as part of the ongoing integration process[187](index=187&type=chunk) [PART II — OTHER INFORMATION](index=41&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section provides updates on legal proceedings, risk factors, equity security sales, and a list of exhibits filed with the Form 10-Q [Legal Proceedings](index=41&type=section&id=Item%201%20%E2%80%94%20Legal%20Proceedings) There have been no material changes in the company's legal proceedings since the 2022 Annual Report on Form 10-K - No material changes have occurred in the legal matters previously described in the company's 2022 Annual Report on Form 10-K[189](index=189&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A%20%E2%80%94%20Risk%20Factors) The company's risk factors have not materially changed from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2022 - The company's risk factors have not changed materially from those reported in the Annual Report on Form 10-K for the year ended December 31, 2022[190](index=190&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202%20%E2%80%94%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock in Q1 2023, with $195.0 million remaining available under its share repurchase program - There were no repurchases of common stock during the first quarter of 2023[192](index=192&type=chunk) - As of March 31, 2023, the maximum value of shares available for purchase under the company's share repurchase program is **$195.0 million**[192](index=192&type=chunk) [Exhibits](index=42&type=section&id=Item%206%20%E2%80%94%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including Indenture and Registration Rights Agreement for Senior Notes, and CEO/CFO certifications - Exhibits filed include the Indenture and Registration Rights Agreement related to the Senior Notes issued in January 2023[193](index=193&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to the Sarbanes-Oxley Act of 2002 are included as exhibits[193](index=193&type=chunk)

Creating a better tomorrow™… May 5, 2023 1Q 2023 FORWARD LOOKING STATEMENTS 2 NON-GAAP FINANCIAL MEASURES In this presentation, we disclose the following non-GAAP financial measures, and we reconcile these measures in the tables below to the most directly comparable GAAP financial measures: adjusted diluted earnings per share, adjusted income from operations, adjusted operating margin, adjusted net sales, net debt, EBITDA, adjusted EBITDA, proforma EBITDA, proforma adjusted EBITDA, normalized adjusted EBITD ...

Regal Rexnord Corporation (NYSE:RRX) Q1 2023 Earnings Conference Call May 5, 2023 10:00 AM ET Company Participants Robert Barry - Vice President, Investor Relations Louis Pinkham - Chief Executive Officer Rob Rehard - Executive Vice President and CFO Conference Call Participants Mike Halloran - Baird Christopher Glynn - Oppenheimer Jeff Hammond - KeyBanc Capital Markets Nigel Coe - Wolfe Research Julian Mitchell - Barclays Operator Hello. And welcome to the Regal Rexnord First Quarter 2023 Earnings Conferen ...