THERMON GROUP HOLDINGS, INC. EARNINGS PRESENTATION FIRST QUARTER FISCAL YEAR 2026 AUGUST 7, 2025 Q1 FY2026 Earnings | 1 Cautionary Note Regarding Forward-looking Statements This presentation includes forward-looking statements within the meaning of the U.S. federal securities laws in addition to historical information. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without lim ...

Core Insights - Intercorp Financial Services Inc. (IFS) is expected to report second-quarter 2025 results on August 11, with anticipated year-over-year earnings growth driven by higher revenues despite increased provisions for credit losses and expenses [1][10]. Revenue Factors - A significant portion of IFS's revenue comes from spread income, and a recent 25 basis point cut in Peru's benchmark interest rate to 4.50% is expected to support loan demand [3]. - The company is likely to have experienced a decline in deposit costs, contributing to an increase in net interest and similar income, as well as an expansion in net interest margin due to lower deposit repricing [4]. - Strong asset inflows from a decent equity market performance are expected to enhance IFS's assets under management, benefiting its wealth management operations and increasing net fee income from banking services and credit card activity [5][10]. Expense Factors - Higher salaries, employee benefits, and administrative expenses are anticipated to keep the expense base elevated, alongside increased costs related to the company's digitization efforts [6][10]. Earnings Expectations - The consensus estimate for IFS's earnings is $1.07 per share, reflecting a 62.1% increase from the previous year [2][10]. - The company's earnings surprise history shows it has surpassed the Zacks Consensus Estimate in four of the last five quarters, with an average beat of 17.26% [2]. Zacks Model Insights - The quantitative model indicates that IFS lacks the necessary combination of positive Earnings ESP and a Zacks Rank better than 3 (Hold) for a conclusive prediction of an earnings beat this time [7][8].

I maybe should just ask right off the bat how surprised you were about the stock price reaction. >> Well, it it was a great time, but I have to tell you when we went public uh about four years ago in 2021, our stock price was $44. So, we're back to be here being here.But, you know, since then we've more than tripled the top line of the company. Our gross margins went from about 24% to record over 40% and we went from losing money uh to making money. So, a lot of great stuff has happened, but we're just it's ...

Financial Data and Key Metrics Changes - Revenue for the second quarter reached $672 million, an 11% increase year over year, exceeding the high end of guidance [6][17] - Earnings per share (EPS) grew 25% to $1.89, also above the high end of guidance [6][18] - Gross margins increased by 70 basis points year over year to 38.9%, while adjusted EBITDA margins expanded by 50 basis points to 17% [7][18] - Free cash flow for the trailing twelve months was $216 million, aligning with expectations [8][22] Business Line Data and Key Metrics Changes - Automation Solutions revenue grew 10% year over year, with orders up 11% [18][20] - Smart Infrastructure Solutions revenue increased by 13% year over year, with orders up 23% [18][21] - Broadband business revenue also saw growth, including 5% organic growth in fiber products [21] Market Data and Key Metrics Changes - All major regions experienced growth, with a book to bill ratio of 1.05 compared to 1.0 in the prior year [7] - Order activity was strong, with orders up 8% sequentially and 16% year over year [7][17] Company Strategy and Development Direction - The company is focused on solutions transformation, aiming to deliver high-value offerings and enhance earnings power [6][8] - Recent wins include a multi-site solutions award with a hyperscale data center customer and a global specification from a major US automotive manufacturer, showcasing the effectiveness of the solutions strategy [9][12] - The company is pursuing strategic acquisitions to support its solutions transformation and enhance its product offerings [8][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the automation business, noting steady improvement and growth across various geographies [35] - There is cautious optimism regarding the smart infrastructure solutions business, with some uncertainty in broader market conditions [37][39] - The medium and long-term outlook remains positive, driven by trends in reindustrialization, automation, and digitization [28][29] Other Important Information - The company has repurchased 1 million shares for $100 million, demonstrating a commitment to disciplined capital allocation [8][22] - The effective tax rate for the quarter was 12.3%, benefiting adjusted EPS by $0.11 [18][19] Q&A Session Summary Question: Insights on the second half demand environment - Management noted steady improvement in the automation business and growth in key verticals, while the smart infrastructure solutions business showed mixed signals [35][36] Question: Margin performance and future leverage - Management indicated that the EBITDA margin should continue to be modeled with a roughly 25% incremental margin year over year [40][41] Question: Concerns about sequential margin performance - Management acknowledged some noise from quarter to quarter but emphasized that underlying business conditions remain healthy [44] Question: Update on hyperscale market engagement - Management confirmed ongoing focus on both white space and gray space in data centers, with a robust pipeline of opportunities [47][50] Question: Context on the multimillion-dollar contract for modular cooling - Management highlighted the contract's significance in addressing energy management challenges faced by hyperscale data centers [57][58] Question: Tracking of solutions sales towards the 20% target - Management reported that automation solutions are on track to meet the 20% target, with ongoing investments in smart infrastructure solutions [60][61] Question: Sustainability of the lower tax rate - Management indicated that the current tax benefits are more discrete in nature, suggesting a long-term tax rate closer to 20% moving forward [65] Question: Factors affecting Smart Infrastructure Solutions margins - Management attributed margin pressures to investments in solutions initiatives and higher copper costs [70][71] Question: M&A pipeline focus areas - Management outlined a robust M&A pipeline aimed at closing technology gaps and enhancing access to end customers [72][75] Question: Insights on fiber and broadband market dynamics - Management noted strong performance in fiber sales, particularly in DOCSIS upgrades, while maintaining a focus on distribution networks [79][81] Question: Impact of copper volatility on guidance - Management confirmed that current guidance incorporates recent copper price fluctuations, with a typical two-month lag for price adjustments [83][86]

Financial Data and Key Metrics Changes - Revenue for the second quarter reached $672 million, up 11% year over year, exceeding the high end of guidance [5][17] - Earnings per share (EPS) grew 25% to $1.89, also above the high end of guidance [5][19] - Gross margins increased by 70 basis points year over year to 38.9%, while adjusted EBITDA margins expanded by 50 basis points to 17% [6][19] - Free cash flow for the trailing twelve months was $216 million, aligning with expectations [7][24] Business Line Data and Key Metrics Changes - Automation Solutions revenue grew 10% year over year, with orders up 11% [20] - Smart Infrastructure Solutions revenue increased by 13% year over year, with orders up 23% [21] - Broadband business revenue also saw growth, including 5% organic growth in fiber products [22] Market Data and Key Metrics Changes - All major regions experienced growth, contributing to a 5% organic growth overall [6] - Order activity was strong, with orders up 8% sequentially and 16% year over year [6][18] Company Strategy and Development Direction - The company is focused on solutions transformation, aiming to deliver high-value offerings and enhance earnings power [6][29] - Recent wins include a multi-site solutions award with a hyperscale data center customer and a global specification from a major US automotive manufacturer, showcasing the effectiveness of the solutions strategy [8][12] - The company is positioned to benefit from trends in reindustrialization, automation, digitization, and IT/OT convergence [28][29] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing uncertainty in the macro environment but expressed confidence in the medium and long-term outlook due to fundamental trends driving the business [27][28] - The company expects steady near-term demand, with third-quarter performance likely to mirror typical seasonal patterns [27][28] Other Important Information - The company has a robust M&A pipeline focused on technology gaps, customer access, and software capabilities [69][72] - The effective tax rate for the second quarter was 12.3%, benefiting adjusted EPS by $0.11 [19][20] Q&A Session Summary Question: Thoughts on the second half demand environment - Management sees steady improvement in automation solutions and growth in key verticals, but acknowledges uncertainty in smart infrastructure solutions [34][35] Question: Margin performance and future leverage - Management indicated that the incremental EBITDA margin remains around 25% and that there are no significant changes expected [39] Question: Context on the hyperscale award - The hyperscale contract is a multimillion-dollar deal expected to play out over several years, addressing energy management challenges faced by data center providers [54][56] Question: Update on solutions sales tracking - Solutions sales are on track to reach the target of 20% by 2028, with automation solutions leading the way [58][59] Question: Comments on fiber and broadband market - The company is focused on the distribution portion of the broadband network, with strong sales in fiber products [76][78] Question: Impact of copper volatility on guidance - Guidance incorporates current copper prices, with a typical two-month lag for passing through costs to customers [80][83]

Financial Data and Key Metrics Changes - Organic sales grew by 6% in Q3 2025, with segment margins expanding by 20 basis points to 17.6% [5][22] - Adjusted EPS increased by 11% year-over-year to $1.05, exceeding guidance [5][22] - Year-to-date adjusted free cash flow nearly doubled to $1.8 billion, with over 100% free cash flow conversion expected for the year [5][22] Business Line Data and Key Metrics Changes - Orders grew by 2%, with strength in The Americas offset by softness in China [6][23] - In the Americas, orders increased by 5%, while EMEA saw a 2% increase, and APAC experienced a decline [23][24] - Sales in the Americas rose by 7% organically, with EMEA growing by 4% and APAC by 6% [24][25] - The backlog grew by 11% to a record $14.6 billion, with both system and service backlogs increasing [6][26] Market Data and Key Metrics Changes - Orders in the Americas increased by 5%, while EMEA saw a 2% increase, and APAC orders declined [23][24] - The service business showed strong growth, particularly in EMEA with an 8% increase [24][25] - The data center market remains robust, contributing to healthy sales growth [94] Company Strategy and Development Direction - The company is focusing on customer centricity, operational efficiency, and innovation to drive growth [8][9] - A new business system is being implemented, emphasizing simplification, acceleration, and scaling through lean principles and digitization [12][13] - The company is evaluating its portfolio for potential acquisitions or exits to ensure sustainable growth [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core vertical markets remaining healthy despite challenges in China [64] - The company anticipates low single-digit organic sales growth for Q4 and is raising its full-year guidance for adjusted EPS and free cash flow [27][28] - There is a focus on improving operational efficiency and addressing growth blockers identified in various business lines [15][16] Other Important Information - The sale of the residential and light commercial HVAC business to Bosch is expected to close in Q4, with most net proceeds returned to shareholders [28] - The company is committed to returning 100% of free cash flow to shareholders through dividends and share repurchases [27][28] Q&A Session Summary Question: Initial observations and KPIs focus - Management highlighted the importance of sharpening customer focus and driving growth through innovation and R&D investments [30][32] Question: Accelerating growth in Fire and Security - Management sees potential for growth in Fire and Security, with plans to apply new business system principles to improve performance [41][44] Question: Free cash flow opportunities - Management noted strong cash flow performance driven by improved accounts receivable management and ongoing lean transformation efforts [47][49] Question: Order trends and long-term outlook - Management acknowledged ongoing softness in China but expressed confidence in healthy pipelines and core vertical markets [62][64] Question: Framework for 2026 and Investor Day plans - Management is working on 2026 plans and aims to provide a clearer long-term outlook as the year progresses [71][73]

Industry Overview - Cybersecurity involves comprehensive measures to protect systems, networks, and programs from digital attacks aimed at accessing, altering, or destroying sensitive information, extorting money, or disrupting business operations [2] - The rise of artificial intelligence (AI), IoT devices, and increased digitization has heightened vulnerabilities, necessitating advanced security solutions [4] Company Analysis CyberArk Software Ltd. (CYBR) - CyberArk is experiencing increased demand for cybersecurity and privileged access security solutions due to rising data breaches and digital transformation strategies [7] - The company has a strong presence in various sectors, including banking, healthcare, and government, which helps mitigate the impact of softening IT spending [8] - CyberArk's strategic shift towards software-as-a-service (SaaS) and subscription-based solutions is driving revenue growth, with an expected revenue growth rate of 31.9% and earnings growth rate of 26.4% for the current year [12] - The company has successfully closed several large seven-figure deals, contributing to increased deferred revenues and visibility [10][11] Okta Inc. (OKTA) - Okta operates as an identity partner, offering products for managing and securing identities, including Single Sign-On and Adaptive Multi-Factor Authentication [13][14] - The company has expected revenue and earnings growth rates of 9.4% and 16.7%, respectively, for the current year ending January 2026 [15] Fortinet Inc. (FTNT) - Fortinet is benefiting from rising demand from large enterprise customers and growth in security subscriptions, with expected net sales to rise 13.1% from 2024 [16][17] - The company has a strong balance sheet and focuses on enhancing its unified threat management portfolio through product development and acquisitions, with expected revenue and earnings growth rates of 13.3% and 4.6%, respectively, for the current year [17]

Market Trends & Digitalization - Goldman Sachs and BNY Mellon are digitizing the $7.1 trillion money market [1]

LATEST: Goldman Sachs and BNY Mellon Digitize the $7.1T Money MarketListen for the details... https://t.co/ZgM7hzhRVn ...

Problem & Solution - The core issue in Morocco is low societal trust, with only 123% of Moroccans trusting each other, ranking it fourth lowest globally [10][12] - The existing public notary system ("Mata") is plagued with corruption, inefficiency, and even enables atrocities, leading to significant social and economic problems [4][5][6] - Waraki aims to solve this by providing a digital solution, an app that uses technology like facial recognition and AI to witness and validate document signatures, ensuring authenticity and preventing fraud [14][15] - The app is integrated with the police system, allowing users to activate their accounts using their national ID and facial recognition [17][18] Business Model & Impact - Waraki operates under a public-private partnership (PPP) model, providing the app for free to citizens [28][23] - The company initially didn't focus on revenue but on solving a problem, with potential revenue streams emerging from the volume of signatures processed [28][30] - The project estimates 295 million signatures per year in Morocco, potentially generating $30 million based on a 10 dirham per signature fee [30] - The initiative has led to the creation of new laws in Morocco, such as "Lasha Inovo," allowing startups to directly sell innovative solutions to the government without going through lengthy RFP processes [24][25] Government Collaboration & Future Vision - After 10 years of development and over 20 million dirhams of investment, Waraki signed an agreement with the Ministry of Digital Transition to deploy the app as a government-owned project [19] - The government plans to launch two websites: one detailing administrative procedures and another providing instant access to legal documents via the app [23] - Waraki envisions becoming a comprehensive "Moroccan way" app, streamlining various administrative processes beyond just signature notarization [18]