Hillenbrand : Presentation Q2 2024

Second Quarter FY 2024 Earnings Call Presentation

May 1, 2024

Hillenbrand Call Participants

Kim Ryan	Bob VanHimbergen	Sam Mynsberge
President & CEO	SVP & CFO	VP, Investor Relations

2

Disclosure Regarding Forward-Looking Statements

Throughout this earnings presentation, we make a number of "forward-looking statements," that are within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995, and that are intended to be covered by the safe harbor provided under these sections. As the words imply, these are statements about future sales, earnings, cash flow, results of operations, uses of cash, financings, share repurchases, ability to meet deleveraging goals, and other measures of financial performance or potential future plans or events, strategies, objectives, beliefs, prospects, assumptions, expectations, and projected costs or savings or transactions of the Company that might or might not happen in the future, as contrasted with historical information. Forward-looking statements are based on assumptions that we believe are reasonable, but by their very nature are subject to a wide range of risks. If our assumptions prove inaccurate or unknown risks and uncertainties materialize, actual results could vary materially from Hillenbrand's expectations and projections.

Words that could indicate that we are making forward-looking statements include the following:

intend	believe	plan	expect	may	goal	would	project	position	future
become	pursue	estimate	will	forecast	continue	could	anticipate	remain	likely
target	encourage	promise	improve	progress	potential	should	impact	strategy

This is not an exhaustive list, but is intended to give you an idea of how we try to identify forward-looking statements. The absence of any of these words, however, does not mean that the statement is not forward-looking.

Here is the key point: Forward-looking statements are not guarantees of future performance or events, and actual results or events could differ materially from those set forth in any forward-looking statements. Any number of factors, many of which are

beyond our control, could cause our performance to differ significantly from what is described in the forward-looking statements. These factors include, but are not limited to: global market and economic conditions, including those related to the continued volatility in the financial markets; the risk of business disruptions associated with information technology, cyber-attacks, or catastrophic losses affecting infrastructure; increasing competition for highly skilled and talented workers, as well as labor shortages; closures or slowdowns and changes in labor costs and labor difficulties; uncertainty related to environmental regulation and industry standards, as well as physical risks of climate change; uncertainty related to environmental regulation including the Securities and Exchange Commission's ("SEC") final climate rules and litigation regarding its enforceability; increased costs, poor quality, or unavailability of raw materials or certain outsourced services and supply chain disruptions; economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; uncertainty in U.S. global trade policy; our level of international sales and operations; the impact of incurring significant amounts of indebtedness and any inability of the Company to respond to changes in its business or make future desirable acquisitions; the ability of the Company to comply with financial or other covenants in debt agreements; negative effects of acquisitions, including the Schenck Process Food and Performance Materials ("FPM") business and Linxis Group SAS ("Linxis") acquisitions, on the Company's business, financial condition, results of operations and financial performance (including the ability of the Company to maintain relationships with its customers, suppliers, and others with whom it does business); the possibility that the anticipated benefits from acquisitions including the FPM and Linxis acquisitions cannot be realized by the Company in full or at all, or may take longer to realize than expected; risks that the integrations of FPM or Linxis or other acquired businesses disrupt current operations or pose potential difficulties in employee retention or otherwise affect financial or operating results; competition in the industries in which we operate, including on price; cyclical demand for industrial capital goods; the ability to recognize the benefits of any acquisition or divestiture, including potential synergies and cost savings or the failure of the Company or any acquired company to achieve its plans and objectives generally; impairment charges to goodwill and other identifiable intangible assets; impacts of decreases in demand or changes in technological advances, laws, or regulation on the net revenues that we derive from the plastics industry; changes in food consumption patterns due to dietary trends, or economic conditions, or other reasons; our reliance upon employees, agents, and business partners to comply with laws in many countries and jurisdictions; the impact to the Company's effective tax rate of changes in the mix of earnings or in tax laws and certain other tax-related matters; exposure to tax uncertainties and audits; involvement in claims, lawsuits, and governmental proceedings related to operations; uncertainty in the U.S. political and regulatory environment; adverse foreign currency fluctuations; labor disruptions; and the effect of certain provisions of the Company's governing documents and Indiana law that could decrease the trading price of the Company's common stock. Shareholders, potential investors, and other readers are urged to consider these risks and uncertainties in evaluating forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. For a more in-depth discussion of certain factors that could cause actual results to differ from those contained in forward-looking statements, see the discussion under the heading "Risk Factors" in Part I, Item 1A of Hillenbrand's Form 10-K for the year ended September 30, 2023, filed with the SEC on November 15, 2023, and in Part II, Item 1A of Hillenbrand's Form 10-Q for the quarter ended March 31, 2024, filed with the SEC on April 30, 2024. Any forward-looking statement made in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update or revise any forward-looking statement, whether written or oral, made from time to time, whether as a result of new information, future developments or otherwise.

3

Q2 Overview

• Orders improved sequentially in both segments but remained challenged relative to expectations
• Continued strong aftermarket performance and high demand for large polyolefin projects in APS were offset by softer demand in APS mid-size equipment and lower volumes in
  MTS
• Solid adj. EBITDA margin expansion in APS (+100bps YOY) despite lower volumes; MTS margins remain pressured due to volume and price-cost pressure
• Increased scope of restructuring program in MTS to $20 million in annual run-rate savings; executing additional cost actions in APS and corporate center
• Updating FY24 guidance range to reflect impact of lower orders and price/mix pressure in MTS

Q2 2024 Key Metrics1,2

+14%

$691M $785M

Revenue

Q2 2023

Q2 2024

$0.74 +3% $0.76

Adj. EPS

Q2 2023

Q2 2024

+7%

$1.97B $2.11B

Total

Backlog

Q2 2023

Q2 2024

1	All CY and PY results reflect continuing operations, which excludes the divested Batesville segment.	44
2	Adjusted EPS is a non-GAAP measure. See appendix for GAAP reconciliation. See appendix for additional information concerning backlog.

Q2 Consolidated Performance1

	Revenue
	+14%	-5%
	organic
		$785
$691
Q2 2023		Q2 2024

Adj. EBITDA2

	+13%	-7%
	organic
		$123
$109
Q2 2023		Q2 2024

Adj. EPS2

	+3%
$0.74	$0.76
Q2 2023	Q2 2024

Operating Cash Flow

	-$47M
$50
	$3
Q2 2023	Q2 2024

Performance Highlights1,2

Business Update2

• Revenue increased 14%, primarily driven by FPM acquisition; organic revenue decreased 5%, primarily due to lower capital equipment volume, partially offset by pricing and higher aftermarket revenue
• Adj. EBITDA of $123 million increased 13% due to FPM; organically, adj. EBITDA decreased 7%, as pricing, cost actions, and favorable product mix were more than offset by cost inflation and lower MTS volume; adj. EBITDA margin of 15.6% was essentially flat

• Aftermarket performance remained strong; solid demand for large polyolefin projects in APS
• Demand for mid-size equipment across other APS end markets and hot runner product line in MTS remains challenged
• Significant cost actions, incl. restructuring, being taken in MTS in response to sustained market softness; expecting $20M of annual run-rate savings by FY25, with ~50% realized within FY24; incurred a charge of ~$25M during the quarter

• GAAP EPS of $0.09 decreased $0.24 from the prior year as the impact of FPM, lower tax expense, pricing, and cost actions were more than offset by lower organic volume, cost inflation, higher interest expense, and restructuring costs; adj. EPS of $0.76 increased 3%
• Operating Cash Flow was unfavorable to the prior year by $47 million primarily due to lower customer advances and timing of working capital requirements on large projects
• Total backlog of $2.1B increased 7% compared to the prior year due to the FPM acquisition

• Additional cost actions being taken in APS and corporate
• Cash flow below expectations primarily due to order timing, resulting in slightly higher than anticipated leverage of 3.5x; continued focus on cost actions and working capital efficiencies to reduce leverage

1 All CY and PY results reflect continuing operations, which excludes the divested Batesville segment. Organic comparisons exclude the impacts of FPM acquisition and foreign currency exchange.

5

See appendix for GAAP reconciliations.

2 Adjusted EPS, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures. See appendix for GAAP reconciliation and additional information concerning backlog.

Segment Performance: Advanced Process Solutions

	Revenue
	+30%	~Flat
	organic2
		$559
$430
Q2 2023		Q2 2024

Adj. EBITDA1

+38%	+7%
organic2

	$101
$73
Q2 2023	Q2 2024

Adj. EBITDA Margin1

+100 bps

17.0%	18.0%
Q2 2023	Q2 2024

Performance Highlights1,2

Business Update

• Revenue of $559 million increased 30% primarily driven by FPM acquisition; organic revenue was flat year over year, primarily due to lower capital equipment volume, offset by pricing and higher aftermarket revenue
• Adj. EBITDA of $101 million increased 38%, or 7% organically, as pricing and cost actions more than offset lower volume and cost inflation
• Adj. EBITDA margin of 18.0% increased 100 basis points primarily due favorable mix and cost actions; solid margin performance from recent acquisitions tracking ahead of schedule

• The demand pipeline remains robust across key growth platforms of durable plastics, recycling, and food; however, customer decision timing continues to be slower than expected
• Executing targeted restructuring and limiting discretionary costs in light of demand environment
• Full year guidance updated to reflect order delays, partially offset by cost actions and accelerated margin expansion in recent acquisitions

• Backlog of $1.9 billion increased 12% primarily due to the FPM acquisition; on an organic basis, backlog decreased 5%; sequentially, backlog decreased 2% due to FX

1 Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. See appendix for GAAP reconciliation and additional information concerning backlog. 2 Organic comparisons exclude the impacts of FPM acquisition and foreign currency exchange. See appendix for GAAP reconciliations.

6

Segment Performance: Molding Technology Solutions

	Revenue
	-13%
$260	$226
Q2 2023	Q2 2024

Adj. EBITDA1

-29%

$48
	$34
Q2 2023	Q2 2024

Adj. EBITDA Margin1

-330 bps

18.2%
	14.9%
Q2 2023	Q2 2024

Performance Highlights1	Business Update
• Revenue of $226 million decreased 13% year over year primarily due to lower	• Orders improved 12% sequentially, but remained relatively consistent with prior year
equipment volumes	• Injection molding performance, while down YOY, was better than expected due to
• Adj. EBITDA of $34 million decreased 29% compared to the prior year, primarily due to	improved project execution and higher orders; higher margin hot runner product line
lower volume and price-cost pressure; adj. EBITDA margin of 14.9% decreased 330 bps	remains challenged, particularly due to softness in consumer goods / electronics in North
primarily due to fixed cost leverage and price-cost dilution	America; hot runner business experiencing isolated operating efficiencies that are
• Backlog of $230 million decreased 23% compared to the prior year and was essentially	expected to remain through third quarter
flat on a sequential basis	• Increased scope of previously announced restructuring program; now anticipating
	annual run-rate savings of ~$20 million (previously ~$15 million)
	• Updated guidance reflects volume, mix, pricing, and operational headwinds, partially
	offset by cost actions

1 Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. See appendix for GAAP reconciliation and additional information concerning backlog

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Capital Deployment Priorities

Maintain Appropriate Leverage

• Desired range of 1.7x - 2.7x
• Top priority for cash flow is reducing leverage to return to desired range

Reinvest in the Business

• Drive innovation & new product development, expand into new end markets & geographies, and improve operational efficiency via automation & digitization
• Annual capex target of ~2-2.5% of revenue

Strategic Acquisitions

• On pause until leverage returns to within guardrails
• Strategic focus: strong brands with complementary technologies in attractive end markets
• Disciplined approach: seek acquisitions with compelling financial returns

Return Cash to Shareholders

• Dividend yield of 1.8%2
• Opportunistic share repurchases (on pause until leverage returns to within guardrails)

Liquidity3 ($M)	Debt Maturity Schedule4 ($M)
Cash	$494			$500
$224		$400	$375		$350
Total Liquidity
$725
Revolver
$501	Revolver &	5-yr Bonds	7-yr Bonds	5-yr Bonds	10-yr Bonds
	TLA	(at 5.75%)	(at 4.5%)5	(at 6.25%)	(at 3.75%)
	FY27	FY25	FY26	FY29	FY31

• Net debt of $1.88 billion; net debt to pro forma adjusted EBITDA ratio1 of 3.5x as of March 31, 2024
• Q2 weighted average interest rate of 5.5%

1 Defined as ("Total Debt - Cash") / Trailing 12-month pro forma adjusted EBITDA. Pro forma adjusted EBITDA is a non-GAAP measure. Prior periods are as previously disclosed, and reconciliations or other additional information are available in presentations and SEC filings available on our website.

2	Dividend yield as of 4/29/2024	8
3	Cash and credit facility amounts as of 3/31/2024.
4	Debt maturity schedule is shown on a fiscal year basis and reflects date of final payment due.
5	Interest rates subsequently increased to 5.0% (7-yr Bonds).

FY24 Updated Outlook

Revenue

Total YoY

Acquisitions1

FX

Organic YoY2

Adj. EBITDA / Margin3

Total YoY

Adj. EPS3

YoY

Q3 Adj. EPS3

Updated Outlook

		Advanced	Molding
Hillenbrand	Process	Technology
		Solutions	Solutions
$3,230 - $3,300	$2,350 - $2,400	$880 - $900
14%	- 17%	29%	- 32%	(12%)	- (10%)
~17%	~27%	N/A
~0%	~0%	~0%
(3)% - 0%	2%	- 5%	(12)%	- (10)%
$512	- $536	18.3%	- 18.6%	15.5%	- 16.5%
6% - 11%	(120) - (90) bps	(320) - (220) bps
$3.30	- $3.50
(6)% - 0%
$0.80	- $0.85

Previous Outlook

		Advanced	Molding
Hillenbrand	Process	Technology
		Solutions	Solutions
$3,280 - $3,440	$2,400	- $2,500	$880 - $940
16%	- 22%	32%	- 37%	(12%) - (6%)
~18%	~29%	N/A
~1%	~0%	~1%
(3)% - 3%	3%	- 8%	(13)% - (7)%
$530	- $588	18.0% - 19.0%	18.5% - 19.5%
10%	- 22%	(150) - (50) bps	(20) - 80 bps
$3.60	- $3.95
2% - 12%
N/A

Other FY 2024 Assumptions

$130 - $150M	~$65M	~$55M	~$100M	~$120M	~28%	~71M
Free Cash Flow1	Capital Expenditures	Depreciation	Intangible	Interest Expense,	Adj. ETR3	Avg. Diluted Shares
				Amortization	Net
1	Reflects incremental impact of the FPM and Peerless acquisitions.				9
2	Organic outlook excludes the incremental impact from the FPM acquisition and the impact of foreign currency exchange. See appendix for further information.

3 Adjusted EBITDA margin, adjusted EPS, free cash flow, and adjusted effective tax rate are non-GAAP measures. Hillenbrand does not attempt to provide reconciliations for forward-lookingnon-GAAP earnings guidance. See appendix for further information.

Q2 Recap

• Orders improved sequentially in both segments but remained challenged relative to expectations
• Continued strong aftermarket performance and high demand for large polyolefin projects in APS were offset by softer demand in APS mid-size equipment and lower volumes in
  MTS
• Solid adj. EBITDA margin expansion in APS (+100bps YOY) despite lower volumes; MTS margins remain pressured due to volume and price-cost pressure
• Increased scope of cost savings and restructuring program in MTS to $20 million in annual run-rate savings; executing additional cost actions in APS and corporate center
• Attending largest North American plastics trade show, NPE, from May 6-10, featuring multiple brands and highlighting key innovations and solutions across the plastics value chain

Q2 2024 Key Metrics1,2

+14%

$691M $785M

Revenue

Q2 2023

Q2 2024

$0.74 +3% $0.76

Adj. EPS

Q2 2023

Q2 2024

+7%

$1.97B $2.11B

Total

Backlog

Q2 2023

Q2 2024

1	All CY and PY results reflect continuing operations, which excludes the divested Batesville segment.	1010
2	Adjusted EPS is a non-GAAP measure. See appendix for GAAP reconciliation. See appendix for additional information concerning backlog.