ESAB : First Quarter 2024 Earnings Presentation

First Quarter 2024

EARNINGS CONFERENCE CALL

May 1, 2024

Forward-Looking Statements & Non-GAAP Disclaimer

DISCLAIMER

This document has been prepared by ESAB Corporation, a Delaware corporation (the "Company" or "ESAB"), solely for informational purposes. References herein to the terms "ESAB" and the "Company" when used in the historical context prior to April 4, 2022, refer to the carve-out financials derived from Colfax Corporation's ("Colfax") accounting records before giving effect to the separation of Colfax's fabrication technology business into an independent publicly traded company on April 4, 2022 (the "Separation"). References to the terms "ESAB" and the "Company" when used in the future tense or the historical context after April 4, 2022, refer to ESAB Corporation and its consolidated subsidiaries after the Separation.

Forward-Looking Statements

This presentation includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning the

Company's plans, goals, objectives, outlook, expectations, and intentions, including statements that are not historical or current fact. Forward-looking statements are based on the Company's current expectations and involve risks and uncertainties that could cause

actual results to differ materially from those expressed or implied in such forward-looking statements, including general risks and uncertainties such as market conditions, economic conditions, geopolitical events, changes in laws, regulations or accounting rules, fluctuations in interest rates, terrorism, wars or conflicts, major health concerns, natural disasters or other disruptions of expected business conditions. Factors that could cause the Company's results to differ materially from current expectations include, but are not limited to; the war in Ukraine and escalating geopolitical tensions as a result of Russia's invasion of Ukraine and related impact on energy supplies and prices; macroeconomic conditions; supply chain disruptions; the impact on creditworthiness and financial viability of

customers; other impacts on the Company's business and ability to execute business continuity plans; and the other factors detailed in the Company's Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q, as filed with the U.S. Securities and

Exchange Commission. In addition, these statements are based on assumptions that are subject to change. This document speaks only as of the date hereof. The Company disclaims any duty to update the information herein.

Non-GAAP Financial Measures

This document includes a presentation of adjusted EBITDA, adjusted EBITDA margin, organic sales growth, and adjusted free cash flow and other financial measures that are not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), which ESAB uses to measure the performance of its business. The non-GAAP financial measures provided herein are adjusted for certain items as presented in the Appendix and should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies. ESAB presents some of these non-GAAP financial measures including and excluding Russia due to economic and political volatility caused by the Russia and Ukraine conflict, which results in enhanced investor interest in this information. Core non-GAAP financial measures excludes Russia for the three months ended March 29, 2024, and March 31, 2023. Management believes that these non-GAAP financial

measures provide useful information to investors by offering additional ways of viewing ESAB's results, and represent the following:

• Organic sales growth (presented with and without Russia or "Core") excludes the impact of acquisitions and foreign exchange rate fluctuations;
• Adjusted EBITA (presented with and without Russia or "Core") represents net income excluding the effect of restructuring and other related charges, acquisition-related amortization and other non-cash charges, separation costs, pension settlement gains, income tax expense, and interest expense (income) and other, net;
• Adjusted EBITDA (presented with and without Russia or "Core") represents Adjusted EBITA excluding the effect of depreciation and other amortization;
• Adjusted EBITA and adjusted EBITDA margins are subject to the same adjustments as adjusted EBITA and adjusted EBITDA, respectively;
• Adjusted net income from continuing operations (presented with and without Russia or "Core") represents net income from continuing operations attributable to ESAB Corporation excluding restructuring and other related charges, acquisition-related amortization and other non-cash charges, pension settlement gains and separation costs. Adjusted net income includes the tax effect of non-GAAP adjusting items at applicable tax rates;
• Adjusted net income per share from continuing operations (presented with and without Russia or "Core) is a calculation of adjusted net income from continuing operations over the weighted-average diluted shares outstanding;
• Adjusted free cash flow represents cash flows from operating activities excluding cash outflows related to the ESAB's separation from Colfax and discontinued operations, less purchases of property, plant and equipment net of proceeds from sale of certain properties.
• Cash conversion represents Adjusted free cash flow divided by Adjusted net income from continuing operations.

Management also believes that presenting these measures allows investors to view its performance using the same measures that ESAB uses in evaluating our financial and business performance and trends. See the Appendix to this presentation for a reconciliation of these non-GAAP measures to their closest equivalent GAAP measures. Refer to information about the non-GAAP measures contained in this presentation. Additional information regarding non-GAAP measures can be found in our most recent Form 10-K and our Form 8-K furnished as of the date of this presentation with the SEC, which are available at www.ESABcorporation.com.

2	Proprietary & Confidential
ESAB Corporation

1Q 2024 Highlights

• Record 1Q performance
• Automation and equipment up HSD
• EBX driving margins and cash flow
• Successful bond offering
• Closed Sager acquisition and agreed to acquire SUMIG

Strong start to 2024

1Q 2024 results:

$656M	+2%
Sales1	Organic Sales Growth1

$123M	+9%
aEBITDA1	Year-over-Year
18.8%	+140bps
aEBITDA Margin1	Year-over-Year

3		Proprietary & Confidential
1 Core - See non-GAAP reconciliation tables in appendix	ESAB Corporation

Continuing To Improve Our Mix

20162

% of Total Revenue

26%

EBITDA13.3%4 Margin %

74%

1Q 233

% of Total Revenue

29%

17.4%

71%

1Q 243

% of Total Revenue

31%

18.8%

69%

	Equipment 1		Consumables		Equipment		Consumables

Shifting ESAB to a more profitable mix

Equipment		Consumables

4		Proprietary & Confidential
1 Includes welding equipment, gas control, and automation; 2 Pro-Forma based on Colfax 10-K adjusted for public company expenses; 3 Source 1Q 2023 and 1Q 2024 ESAB 10-Q; 4 See Appendix for 2016 aEBITDA% non-GAAP disclosure	ESAB Corporation

Accelerating Our Compounder Journey

CRITERIA

Less	Higher	Automation	TAM	Financial
Cyclicality	Margin	Solution	Expansion	Framework

FM

A&E

GC

FINANCIAL FRAMEWORK

Strategic	▪ Strong secular tailwinds
Criteria	▪ Limited cyclicality

	+
Financial	▪ MSD+ growth; 40%+ GM
▪ High synergy potential
Criteria

=

Value	▪	Disciplined valuation
Creation	▪	ROIC > 10% over 3-5 yrs

Acquisition funnel continues to strengthen

5	Proprietary & Confidential
ESAB Corporation

ESAB 1Q 2024 Financial Summary

($ Millions)	1Q 20241	1Q 20231	YoY
Sales	$656	$647	1%
aEBITA	$115	$105	10%
aEBITA Margin %	17.5%	16.2%	130 bps
aEBITDA	$123	$113	9%
aEBITDA Margin %	18.8%	17.4%	140 bps
1Q Highlights:		1Q 2024 Sales Growth1:

• Strength in emerging markets
• Increasing exposure to less cyclical end-markets
• Equipment and automation up HSD
• • Welding cobots grew triple digits
• EBX driving record margin expansion

Organic	2%
Price	1%
Volume	1%
FX Translation	(1%)
Acquisitions	0%
Total	1%

EBX delivering margin expansion and creating value

6	1 Core; see non-GAAP reconciliation tables in appendix	Proprietary & Confidential
ESAB Corporation

ESAB 1Q 2024 Americas

($ Millions)	1Q 20241	1Q 20231	YoY
Sales	$296	$292	2%
aEBITDA	$54	$	49	9%
aEBITDA %	18.3%	17.0%	130 bps
1Q Highlights:		1Q 2024 Sales Growth1:
■ Strength in energy end-market		Organic	3%
■ NPI driving excitement in the channel		Price	5%
	Volume	(2)%
■ Value pricing momentum continues
	FX Translation	(2)%
■ EBX driving margin expansion
	Acquisitions	0%
		Total	2%2

EBX driving continued margin expansion

7	1 Core; see non-GAAP reconciliation tables in appendix; 2 Rounding	Proprietary & Confidential
ESAB Corporation

ESAB 1Q 2024 EMEA and APAC1

($ Millions)	1Q 20241	1Q 20231	YoY
Sales	$360	$355	1%
aEBITDA	$69	$63	9%
aEBITDA %	19.2%	17.8%	140 bps

1Q Highlights:

• Europe remains resilient
• Middle East, India and Asia driving volumes
• Continue to shift mix towards equipment and automation
• EBX expanding margins

1Q 2024 Sales Growth1:

Organic	1%
Price	(3)%
Volume	5%
FX Translation	0%
Acquisitions	0%
Total	1%2

Emerging market momentum continues

8	1 Core; see non-GAAP reconciliation tables in appendix; 2 Rounding	Proprietary & Confidential
ESAB Corporation

Strong Free Cash Flow Reducing Net Leverage

$41M

$40M

$22M

Q1 2022

Q1 2023

Q1 2024

▪

▪

▪

▪

Robust 1Q FCF performance

Achieved Ba1/BB+ credit rating

Successful execution of $700 million bond

Strengthened balance sheet to support M&A

Net Leverage 2.8x

1.8x

Cash flow increasing financial flexibility

9	Proprietary & Confidential
ESAB Corporation

Raising Full Year 2024 Guidance

	Old FY 2024	New FY 2024
Financial Metrics	Guidance1	Guidance1

Sales		$2.66-$2.71B		$2.66-$2.71B

Core Organic Growth %		2.5%-4.5%		2.5%-4.5%

aEBITDA		$495-$515M		$500-$520M

aEPS		$4.65-$4.85		$4.75-$4.95

aFCF Conversion %		> 95%		> 95%

Continued growth, margin expansion and cash flow generation

• Sales guidance assumes:
• • LSD price and volume
  • Incremental ~(0.5)% FX to ~(1.5)%
  • ~0.5% for Sager acquisiton
• aEBITDA margin expansion and aEPS growth continues
• Free cash flow conversion remains on track
• Upside from SUMIG acquisition not included

1	See slide 12 for guidance detail	Proprietary & Confidential
10		ESAB Corporation