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2014 Annual Shareholders Meeting February 26, 2014

Pursuing Growth • Building Value

a global diversified industrial company

2014 Hillenbrand

Forward-Looking Statements and Factors That May Affect Future Results

 

Throughout this presentation, we make a number of “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. As the words imply, these are statements about future plans, objectives, beliefs, and expectations 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.

 

Accordingly, in this presentation, we may say something like,

 

“We expect that future revenue associated with the Process Equipment Group will be influenced by order backlog.”

 

That is a forward-looking statement, as indicated by the word “expect” and by the clear meaning of the sentence.

Other words that could indicate we are making forward-looking statements include:

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, and our actual results 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.

 

For a discussion of factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions under the heading “Risk Factors” in Item 1A of our Form 10-Q for the period ended December 31, 2013, located on our website and filed with the SEC. We assume no obligation to update or revise any forward-looking statements.

Disclosure regarding forward-looking statements

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2014 Hillenbrand

Foundational Strengths

Strategy

Leverage our strong financial foundation and core competencies to deliver sustainable

growth and long-term value.

Goals for Creating Shareholder Value• Grow organically and through acquisitions• Maintain strong balance sheet and superior cash generation

Strategy Management

LeanBusiness

Intentional TalentDevelopment

Focus on long-term objectives that generate the

greatest growth and value

Flow value to the customer, drive out waste and

pursue perfection to deliver

superior results

Recruit and retain top talent by

providing key employees with

development opportunities that

stretch their abilities

Stable Cash Flow and Earnings • Culture of Execution • Experienced Management Team

Criteria for future acquisition candidates include:

●Attractive margins, strong cash generation and multiple pathways for growth

●Good market positions, strong brand and good growth prospects in its defined space

● Strong strategic fit with Hillenbrand

• Tuck-in• Adjacent• Other industrial company

●Ability to benefit from our core competencies and share its own competitive strengths

Our strategy focuses on diversified growth – organic and through acquisition – and creating shareholder value

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2014 Hillenbrand

Executing our strategy to diversify through acquisitions has led to robust revenue growth

2008 2009 2010Hillenbrand, Inc. (parent of Batesville Casket Company)

begins operation April 1, 2008

K-Tron acquisition (includes

TerraSource) April 1, 2010

2011Rotex acquisition

September 1, 2011

2012Coperion

acquisition December 1,

2012

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2013

$0

$300

$600

$900

$1,200

$1,500

$1,800

FY09 FY10 FY11 FY12 FY13

Revenue Since 2009 ($ millions)

2014 Hillenbrand

0%

50%

100%

FY09 FY14 Estimate

Death Care Plastics Other

We have transformed into two attractive platforms that provide diversification by end markets and geography

• Multiple pathways/end markets for growth

• Diversified revenue sources

• Parts and service revenue ~ 1/3 of total

• Historical Adj EBITDA* margin > 25%

• Strong, predictable cash flow

Batesville

TerraSource

Process Equipment Group

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(K-Tron merged with Coperion effective

10/1/2013)

Food, Chemicals,

Potash, Coal, Minerals and Mining, Frac

Sand, Pulp/Biomass and Pharma

0%

50%

100%

FY09 FY14 Estimate

Americas EMEA ASIA

0%

50%

100%

FY09 FY14 Estimate

Death Care

Process Equipment

* See our form 10Kfor fiscal year 2013 filed with the SEC and available on our website at http://ir.hillenbrandinc.com/sec.cfm

2014 Hillenbrand

Hillenbrand’s FY 13 financial performance…

*** Net Debt is Total Debt less Cash6** Free cash flow is defined as operating

cash flow less capital expenditures

FY10 includes K-Tron acquisition

($369m Net purchase price)

FY11 includes Rotex

acquisition

($240m Net purchase

price)

* See our form 10K for fiscal years 2012 and 2013 filed with the SEC and available on our website at http://ir.hillenbrandinc.com/sec.cfm

$-

$500

$1,000

$1,500

$2,000

FY 12 FY 13

Revenue $ in millions

$-

$100

$200

$300

FY 12 FY 13

Adjusted EBITDA* $ in millions

$0

$100

$200

$300

$400

$500

$600

$700

$800

FY12 FY13

Net Debt***

$0

$100

$200

FY12 FY13

Free Cash Flow**

FY13 includes Coperion

acquisition

($512m net purchase price,

including $130m pension liability)

2014 Hillenbrand

… fuels a capital deployment strategy that focuses on creating shareholder value

Reinvestment for long-term growth– Organic growth investments– Acquisitions

Meaningful dividend– $0.78 per share in 2013

(41% payout ratio)

– Annual $0.01 increase per share per year (6 consecutive years)

– Attractive dividend yield: 2.7.% (2/24/14)

Reinvestment for

Long-Term Growth

Working Capital

and CapEx

Dividends

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2014 Hillenbrand

Shareholder returns have outperformed the markets since we acquired Coperion

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10/15/12

11/15/12

12/15/12

1/15/13

2/15/13

3/15/13

4/15/13

5/15/13

6/15/13

7/15/13

8/15/13

9/15/13

10/15/13

11/15/13

12/15/13

1/15/14

2/15/14$50

$75

$100

$125

$150

$175

Value of $100 Investment on October 15, 2012 with dividend reinvestment

Hillenbrand, Inc. S&P 500 Stock Index S&P 600 Small Cap Stock Index

2014 Hillenbrand

We expect attractive revenue and earnings growth in 2014

 2014 Guidance Summary 2013 2014

Revenue (millions) $1,553 $1,700

Adjusted EPS* $1.88 $2.00 - $2.10

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* See our form 10K for fiscal year 2013, and our form 10Q for the first quarter of fiscal year 2014 each filed with the SEC and available on our website at http://ir.hillenbrandinc.com/sec.cfm.

2014 Hillenbrand2014 Hillenbrand

Our path forward includes continued attractive growth

$ 0.6Billion

2013 2017 Vision2009

$1.6Billion

Organic Revenue

24% CAGR 60% Process Equipment40% Death care Products

Double digit growth targets

100%Death care Products

PEG will continue to become a larger portion of our portfolio due to higher growth than Batesville

Additional growth from acquisitions

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2014 Hillenbrand 11

Thank you for your investment

a global diversified industrial company

Pursuing Growth • Building Value