To My Fellow Shareholders, Associates, and Other Stakeholders:

It has been a great privilege to complete my first year as Hillenbrand's CEO. The last twelve months have been transformational for Hillenbrand, as we made remarkable progress in executing our strategy to grow as a world-class global industrial company.

I am proud of all we accomplished in the face of a continued challenging macroeconomic environment, which is a testament to our talented and dedicated associates around the globe. I am confident we are well positioned for a bright future, guided by our Purpose, leveraging our strong foundation, and enabled by the Hillenbrand Operating Model (HOM).


Delivered strong operational performance

Surpassed Milacron integration synergy target

Defined our company Purpose, Shape What Matters for Tomorrow

Completed several strategic acquisitions in key end markets of recycling and food

Announced agreement to sell Batesville, which will complete our transformation into a pure-play industrial company

Our Purpose

One of my first priorities as Hillenbrand's new CEO was to work with our stakeholders to define our company's Purpose and identify the role Hillenbrand plays in the world. We play a unique part in the development of a sustainable future, as a solutions provider to a wide range of customers who manufacture what the world needs to thrive today, while partnering with them to develop new solutions for a better tomorrow.

Our Purpose—Shape What Matters For Tomorrow—reflects our unique position as industry leaders who create innovative solutions for a wide variety of end markets that impact how people live, work, play, travel, eat, and heal.

Having a clear purpose not only helps retain and attract top-tier talent, but also inspires us to pursue exceptional performance and to generate long-term shareholder value, as we seek to innovate and grow in attractive end markets, such as durable plastics, food processing, and recycling.

Bringing our Purpose to Life

Last year's acquisition of Herbold Meckesheim, a leading recycling company, has enhanced our ability to help "close the loop" within the plastics value chain, from pellets to products to recycling back into pellets, and so on. The process starts with our Coperion brand, a leading provider of extrusion, feeding, and material handling equipment that serves large polyolefin and advanced chemical companies in creating plastic and polymer pellets. These pellets can then be melted and molded into products by our Milacron and Mold-Masters branded equipment. Coperion and Herbold now offer full solutions to recycle these products back into pellets through a variety of different recycling processes, which can then be re-molded into products. The increasing demand for circularity within the plastics value chain is being driven by consumers, customers, and regulators, and we are well positioned to innovate across our portfolio to be a continued leader in this effort, as all of our technologies are fully capable of processing recycled and bio-based content. This is just one example of how our businesses operate to help Shape What Matters for Tomorrow.

FY 2022 Highlights

Fiscal year 2022 was a pivotal year for Hillenbrand as we made significant progress in executing our strategy for growth. Despite significant macro headwinds from inflation, supply chain disruptions, China's zero-COVID policy, and foreign currency, we achieved record levels for backlog, revenue, and adjusted EBITDA in our industrial segments.

This performance reflects the enduring value we create for our customers throughout the useful life of our highly-engineered, mission-critical processing technologies and solutions. We continued to leverage the HOM to drive efficiencies throughout the business while adding talent and enhancing the capabilities of the organization, such as in our Global Supply Management and Global Engineering Centers of Excellence.

In late November, we completed the third and final year of the Milacron integration. As we announced earlier in the fiscal year, we surpassed our $75 million annual run-rate synergy target ahead of schedule (which was already increased from our initial target of $50 million when we announced the acquisition in 2019). This integration has helped transform our company by providing us with a scalable foundation for growth.

We are now leveraging this foundation to drive value in our recent acquisitions of Gabler, Herbold, Linxis, and Peerless. We utilized our disciplined capital allocation and M&A framework to deploy approximately $740 million towards these acquisitions and have hit the ground running to integrate these businesses, both operationally and culturally, as we utilize our proven playbook within the HOM.

Finally, through our disciplined capital allocation strategy, we continued our commitment to delivering value to our shareholders, returning approximately $266 million to shareholders during the year through our share repurchase program and our quarterly dividends.

We enter fiscal year 2023 with record backlog and solid order momentum within our Advanced Process Solutions segment. While we continue to operate in an uncertain and challenging global macro environment, we are closely monitoring the demand environment and will execute our downturn playbook as needed. With our recent acquisitions, our net leverage is approximately 2.8x, and we remain committed to deleveraging and integrating the acquisitions over the near-term. We expect to be well within our net leverage targets of 1.7x to 2.7x by the end of fiscal year 2023, further supported with proceeds upon closing of the Batesville sale.

Transforming into a World-Class, Pure-Play Global Industrial Company

Our focus on selling highly-engineered solutions designed to meet the complex needs of our customers is how we win. We continue to position Hillenbrand for long-term profitable growth through our commitment to innovation and organic investments for growth. We strive to accelerate our growth through strategic acquisitions that further strengthen our capabilities and build scale within existing and emerging markets supported by attractive secular growth trends. To that end, over the last 12 months, we made significant progress in the end markets of recycling and food, which have long been strategic focus areas of ours. These end markets have enduring, long-term growth characteristics, which we expect to exceed GDP, and require similar processing expertise to our existing plastics offering. The acquisitions we made this year provide scale and expand our capabilities in key areas of their respective value chains. We are able to leverage our global manufacturing and service footprint, our global engineering expertise, and our knowledge of developing complete processing systems to bring enhanced value to our customers across our combined portfolio of products.


Delivered strong operational performance

Surpassed Milacron integration synergy target

Defined our company Purpose, Shape What Matters for Tomorrow

Completed several strategic acquisitions in key end markets of recycling and food

Announced agreement to sell Batesville, which will complete our transformation into a pure-play industrial company


Adding over $400M in revenue from end markets growing>GDP

Herbold Meckesheim—Acquired July 2022

Gabler specializes in extrusion technology for the food and pharmaceutical industries. A long-time partner of Coperion, we are excited about the engineering and manufacturing capabilities we can further leverage as part of the same company.

Peerless Food Equipment—Acquired December 2022

Peerless is a premier provider of mixing technologies for the food industry in North America.

Linxis Group—Acquired October 2022

Linxis Group is composed of six leading brands specializing in mixing, ingredient automation, and portioning for food, pharmaceuticals, and cosmetics. The Linxis brands provide significant scale with dedicated test labs and sales channels, and a breadth of mission-critical technologies across the food value chain. Highly complementary to our existing Coperion brand, this strategic acquisition is a critical enabler in unlocking value across various food applications, including baked goods, pet food, and alternative proteins, as well as pharmaceuticals.

Gabler Engineering—Acquired June 2022

Gabler, a long-time partner of Coperion, specializes in extrusion technology for the food and pharmaceutical industries.

In mid-December, we announced an agreement to sell our Batesville business segment to LongRange Capital for approximately $762 million. As many of you know, I spent 17 years of my career at Batesville and I have a deep respect for this business and its role in Hillenbrand's history. I firmly believe divesting the business is the right decision for our shareholders, our customers, and our associates. Batesville is in a position of strength, as a longstanding leader within the death care industry, with an experienced and dedicated management team. We believe that LongRange is an excellent partner for Batesville's future.

This divestiture will complete Hillenbrand's transformation into a pure-play industrial processing equipment and solutions company, with a focused portfolio that is aligned to attractive secular growth trends and a strong financial profile, as reflected in the FY 2025 performance targets announced at our recent Investor Day.


5%+Revenue CAGR

250bpsAdjusted EBITDA margin expansion

10%+Adjusted EPS CAGR

100%Average Free Cash Flow Conversion

Looking Forward with Confidence

Hillenbrand is well positioned for the future. We have a clear Purpose, a strong leadership team, and a focused portfolio of leading industrial brands and mission-critical technologies. In my 33-year career at Hillenbrand, I have never been more excited about the opportunities ahead of us to create significant value for all of our stakeholders.

I look forward to my continued work with the leadership team and our associates around the world to deliver on our priorities for fiscal year 2023 and our longer-term targets for 2025. I'm proud to be leading the charge to Shape What Matters for Tomorrow.

Kim Ryan President and Chief Executive Officer