8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): November 4, 2021

PARKER-HANNIFIN CORPORATION

(Exact Name of Registrant as Specified in Charter)

Ohio	1-4982	34-0451060
(State or other jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification No.)
6035 Parkland Boulevard, Cleveland, Ohio		44124-4141
(Address of Principal Executive Offices)		(Zip Code)

Registrant's telephone number, including area code: (216) 896-3000

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR

240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR

240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on which Registered
Common Shares, $.50 par value	PH	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On November 4, 2021, Parker-Hannifin Corporation issued a press release and presented a Webcast announcing results of operations for the quarter ended September 30, 2021. A copy of the press release is furnished as Exhibit 99.1 to this report. A copy of the Webcast presentation is furnished as Exhibit 99.2 to this report.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits:

99.1 Press release issued by Parker-Hannifin Corporation, dated November 4, 2021.

99.2 Webcast presentation by Parker-Hannifin Corporation, dated November 4, 2021.

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

		PARKER-HANNIFIN CORPORATION
		By: /s/ Todd M. Leombruno
		Todd M. Leombruno
		Executive Vice President and Chief Financial Officer
Date:	November 4, 2021

EX-99.1

For Release:	Immediately	Exhibit 99.1
Contact:	Media -
	Aidan Gormley - Director, Global Communications and Branding	216-896-3258
	aidan.gormley@parker.com
	Financial Analysts -
	Robin J. Davenport, Vice President, Corporate Finance	216-896-2265
	rjdavenport@parker.com
Stock Symbol:	PH - NYSE

Parker Reports Fiscal 2022 First Quarter Results

- First quarter records for sales, segment operating margins, net income and EPS

- Sales increased 17% to $3.76 billion, organic sales increased 16%

- Segment operating margin was 19.7% as reported, or 22.0% adjusted

- Net income was $451.2 million; EPS was $3.45 as reported, or $4.26 adjusted

- EBITDA margin was 20.6% as reported, or 22.1% adjusted

- Company increases fiscal 2022 EPS guidance

CLEVELAND, November 4, 2021 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2022 first quarter ended September 30, 2021. Fiscal 2022 first quarter sales were a first quarter record at $3.76 billion, an increase of 17% compared with $3.23 billion in the first quarter of fiscal 2021. Net income was also a first quarter record at $451.2 million, an increase of 41% compared with $319.8 million in the prior year quarter. Fiscal 2022 first quarter earnings per share were also a first quarter record at $3.45, an increase of 41% compared with $2.45 in the first quarter of fiscal 2021. Adjusted earnings per share increased 40% to $4.26 compared with adjusted earnings per share of $3.05 in the prior year quarter. Fiscal year-to-date cash flow from operations was $424.4 million, or 11.3% of sales, compared with $737.4 million in the prior year period. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

“We delivered impressive results in the quarter,” said Chairman and Chief Executive Officer, Tom Williams. "Our performance demonstrated operational discipline and agility in a challenging manufacturing environment that coupled increased demand with labor and supply chain constraints. We achieved first quarter records for sales, segment operating margins, net income and earnings per share. Adjusted total segment operating margin and adjusted EBITDA margin both increased 210 basis points as a result of The Win Strategy™ 3.0, portfolio enhancements and the excellent efforts from our global team.”

Segment Results

Diversified Industrial Segment: North American first quarter sales increased 17% to $1.79 billion and operating income was $333.7 million compared with $268.8 million in the same period a year ago. International first quarter sales increased 22% to $1.38 billion and operating income was $291.2 million compared with $186.9 million in the same period a year ago.

Aerospace Systems Segment: First quarter sales increased 3% to $592.7 million and operating income was $118.3 million compared with $86.8 million in the same period a year ago.

Parker reported the following orders for the quarter ending September 30, 2021, compared with the same quarter a year ago:

· Orders increased 26% for total Parker

· Orders increased 32% in the Diversified Industrial North America businesses

· Orders increased 25% in the Diversified Industrial International businesses

· Orders increased 16% in the Aerospace Systems Segment on a rolling 12-month average basis

Offer to Acquire Meggitt PLC

As previously announced on August 2, 2021, the company has reached an agreement on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of Meggitt PLC. The acquisition was approved by Meggitt shareholders on September 21, 2021. The transaction remains subject to satisfaction of the conditions set out in the scheme document, including regulatory clearances. Under the UK Companies Act, the Scheme of Arrangement further requires the sanction of the Court, currently expected during the third quarter of calendar year 2022. For copies of all announcements and further information, please visit the dedicated transaction microsite at www.aerospacegrowth.com.

Outlook

For the fiscal year ending June 30, 2022, the company has increased guidance for earnings per share to the range of $14.52 to $15.22, or $16.95 to $17.65 on an adjusted basis. Guidance assumes organic sales growth of approximately 7% to 10% compared with the prior year. Fiscal year 2022 guidance is adjusted on a pre-tax basis for acquisition-related expenses of $52 million and expected business realignment expenses of approximately $35 million, LORD costs to achieve of approximately $7 million and acquisition-related intangible asset amortization of approximately $320 million. A reconciliation of forecasted earnings per share to adjusted forecasted earnings per share is included in the financial tables of this press release.

Williams added, “Robust demand trends continue across nearly all of our end markets reinforcing our positive outlook for sales and earnings per share for this fiscal year. The transformation of our portfolio and the Win Strategy 3.0 continue to position us to deliver sustainable long-term growth and top quartile performance."

NOTICE OF CONFERENCE CALL:Parker Hannifin's conference call and slide presentation to discuss its fiscal 2022 first quarter results are available to all interested parties via live webcast today at 11:00 a.m. ET, at www.phstock.com. A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year. To register for e-mail notification of future events please visit www.phstock.com.

About Parker Hannifin

Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Parker has increased its annual dividend per share paid to shareholders for 65 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. Learn more at www.parker.com or @parkerhannifin.

Note on Orders

Orders provide near-term perspective on the company's outlook, particularly when viewed in the context of prior and future quarterly order rates. However, orders are not in themselves an indication of future performance. All comparisons are at constant currency exchange rates, with the prior year restated to the current-year rates. All exclude acquisitions until they can be reflected in both the numerator and denominator. Aerospace comparisons are rolling 12-month average computations. The total Parker orders number is derived from a weighted average of the year-over-year quarterly % change in orders for Diversified Industrial North America and Diversified Industrial International, and the year-over-year 12-month rolling average of orders for the Aerospace Systems Segment.

Note on Net Income

Net income referenced in this press release is equal to net income attributable to common shareholders.

Note on Non-GAAP Financial Measures

This press release contains references to non-GAAP financial information including (a) adjusted earnings per share; (b) adjusted total segment operating margin; (c) EBITDA margin; and (d) adjusted EBITDA margin. The adjusted earnings per share and total segment operating margin measures are presented to allow investors and the company to meaningfully evaluate changes in earnings per share and total segment operating margin on a comparable basis from period to period. This press release also contains references to EBITDA, EBITDA margin and adjusted EBITDA margin. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Although EBITDA, EBITDA margin and adjusted EBITDA margin are not measures of performance calculated in accordance with GAAP,

we believe that they are useful to an investor in evaluating the results of this quarter versus the prior period. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

Forward-Looking Statements

Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “potential,” “continues,” “plans,” “forecasts,” “estimates,” “projects,” “predicts,” “would,” “intends,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and include all statements regarding future performance, earnings projections, events or developments. Neither Parker nor any of its respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this press release will actually occur. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance and earnings projections of the company, including its individual segments, may differ materially from past performance or current expectations, depending on economic conditions within its mobile, industrial and aerospace markets, and the company's ability to maintain and achieve anticipated benefits associated with announced realignment activities, strategic initiatives to improve operating margins, actions taken to combat the effects of the current economic environment, and growth, innovation and global diversification initiatives. Additionally, the actual impact of changes in tax laws in the United States and foreign jurisdictions and any judicial or regulatory interpretation thereof on future performance and earnings projections may impact the company’s tax calculations. A change in the economic conditions in individual markets may have a particularly volatile effect on segment performance.

The risks and uncertainties in connection with such forward-looking statements related to the proposed acquisition of Meggitt include, but are not limited to, the occurrence of any event, change or other circumstances that could delay the closing of the proposed acquisition; the possibility of non-consummation of the proposed Acquisition; the failure to satisfy any of the conditions to the proposed acquisition (including the satisfaction of the conditions detailed in the Rule 2.7 announcement); the possibility that a governmental entity may prohibit the consummation of the proposed acquisition or may delay or refuse to grant a necessary regulatory approval in connection with the proposed acquisition, or that in order for the parties to obtain any such regulatory approvals, conditions are imposed that adversely affect the anticipated benefits from the proposed acquisition or cause the parties to abandon the proposed acquisition; adverse effects on Parker’s common stock because of the failure to complete the proposed acquisition; Parker’s business experiencing disruptions due to acquisition-related uncertainty or other factors making it more difficult to maintain relationships with employees, business partners or governmental entities; the possibility that the expected synergies and value creation from the proposed acquisition will not be realized or will not be realized within the expected time period; the parties being unable to successfully implement integration strategies; and significant transaction costs related to the proposed acquisition. Readers should consider these forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021 and other periodic filings made with the SEC.

Among other factors which may affect future performance are: the impact of the global outbreak of COVID-19 and governmental and other actions taken in response; changes in business relationships with and purchases by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms or significant changes in financial condition, changes in contract cost and revenue estimates for new development programs and changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the integration of LORD Corporation or Exotic Metals; the ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination to undertake business realignment activities and the expected costs thereof and, if undertaken, the ability to complete such activities and realize the anticipated cost savings from such activities; ability to implement successfully capital allocation initiatives, including timing, price and execution of share

repurchases; availability, limitations or cost increases of raw materials, component products and/or commodities that cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and changes; compliance costs associated with environmental laws and regulations; potential supply chain and labor disruptions, including as a result of labor shortages; threats associated with and efforts to combat terrorism and cyber-security risks; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; global competitive market conditions, including global reactions to U.S. trade policies, and resulting effects on sales and pricing; and global economic factors, including manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and general economic conditions such as inflation, deflation, interest rates and credit availability; local and global political and economic conditions; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in consumer habits and preferences; foreign exchange rate fluctuations and interest rate fluctuations (including those from any potential credit rating decline); government actions and natural phenomena such as floods, earthquakes, hurricanes and pandemics; and success of business and operating initiatives.

###

PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2021			Exhibit 99.1
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)	Three Months Ended September 30,
(Dollars in thousands, except per share amounts)	2021		2020*
Net sales	$	3,762,809	$	3,230,540
Cost of sales	2,713,897		2,386,449
Selling, general and administrative expenses	407,765		369,851
Interest expense	59,350		65,958
Other expense (income), net	10,052		(4,892)
Income before income taxes	571,745		413,174
Income taxes	120,282		93,063
Net income	451,463		320,111
Less: Noncontrolling interests	306		308
Net income attributable to common shareholders	$	451,157	$	319,803
Earnings per share attributable to common shareholders:
Basic earnings per share	$	3.50	$	2.48
Diluted earnings per share	$	3.45	$	2.45
Average shares outstanding during period - Basic	128,726,721		128,707,745
Average shares outstanding during period - Diluted	130,827,971		130,294,223
CASH DIVIDENDS PER COMMON SHARE
(Unaudited)	Three Months Ended September 30,
(Amounts in dollars)	2021		2020
Cash dividends per common share	$	1.03	$	0.88
RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE
(Unaudited)	Three Months Ended September 30,
(Amounts in dollars)	2021		2020*
Earnings per diluted share	$	3.45	$	2.45
Adjustments:
Acquired intangible asset amortization expense	0.61		0.63
Business realignment charges	0.02		0.12
Integration costs to achieve	0.01		0.03
Acquisition-related expenses	0.40		—
Tax effect of adjustments1	(0.23)		(0.18)
Adjusted earnings per diluted share	$	4.26	$	3.05
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.
1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.

PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2021				Exhibit 99.1
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA
(Unaudited)	Three Months Ended September 30,
(Dollars in thousands)	2021			2020*
Net sales	$	3,762,809		$	3,230,540
Net income	$	451,463		$	320,111
Income taxes	120,282			93,063
Depreciation and amortization	145,522			148,442
Interest expense	59,350			65,958
EBITDA	776,617			627,574
Adjustments:
Business realignment charges	3,014			15,701
Integration costs to achieve	1,202			3,947
Acquisition-related expenses	52,199			—
Adjusted EBITDA	$	833,032		$	647,222
EBITDA margin	20.6		%	19.4		%
Adjusted EBITDA margin	22.1		%	20.0		%
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.

PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2021			Exhibit 99.1
BUSINESS SEGMENT INFORMATION
(Unaudited)	Three Months Ended September 30,
(Dollars in thousands)	2021		2020*
Net sales
Diversified Industrial:
North America	$	1,793,715	$	1,528,111
International	1,376,436		1,129,251
Aerospace Systems	592,658		573,178
Total net sales	$	3,762,809	$	3,230,540
Segment operating income
Diversified Industrial:
North America	$	333,702	$	268,833
International	291,176		186,901
Aerospace Systems	118,251		86,766
Total segment operating income	743,129		542,500
Corporate general and administrative expenses	49,072		36,735
Income before interest expense and other expense	694,057		505,765
Interest expense	59,350		65,958
Other expense	62,962		26,633
Income before income taxes	$	571,745	$	413,174
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.

RECONCILIATION OF TOTAL SEGMENT OPERATING MARGIN TO ADJUSTED TOTAL SEGMENT OPERATING MARGIN
(Unaudited)	Three Months Ended				Three Months Ended
(Dollars in thousands)	September 30, 2021				September 30, 2020
	Operating income		Operating margin		Operating income		Operating margin
Total segment operating income	$	743,129	19.7	%	$	542,500	16.8	%
Adjustments:
Acquired intangible asset amortization expense	79,771				81,703
Business realignment charges	3,014				14,523
Integration costs to achieve	1,202				3,947
Adjusted total segment operating income	$	827,116	22.0	%	$	642,673	19.9	%

PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2021					Exhibit 99.1
CONSOLIDATED BALANCE SHEET
(Unaudited)	September 30,		June 30,		September 30,
(Dollars in thousands)	2021		2021		2020*
Assets
Current assets:
Cash and cash equivalents	$	478,582	$	733,117	$	742,394
Marketable securities and other investments	40,160		39,116		33,463
Trade accounts receivable, net	2,109,648		2,183,594		1,860,324
Non-trade and notes receivable	315,571		326,315		273,991
Inventories	2,264,725		2,090,642		1,943,222
Prepaid expenses and other	422,588		243,966		163,533
Total current assets	5,631,274		5,616,750		5,016,927
Property, plant and equipment, net	2,223,534		2,266,476		2,292,880
Deferred income taxes	145,972		104,251		129,751
Investments and other assets	800,211		774,239		778,591
Intangible assets, net	3,426,540		3,519,797		3,743,314
Goodwill	8,009,340		8,059,687		7,971,897
Total assets	$	20,236,871	$	20,341,200	$	19,933,360
Liabilities and equity
Current liabilities:
Notes payable and long-term debt payable within one year	$	302,309	$	2,824	$	884,450
Accounts payable, trade	1,636,272		1,667,878		1,264,991
Accrued payrolls and other compensation	341,355		507,027		332,110
Accrued domestic and foreign taxes	279,173		236,384		196,429
Other accrued liabilities	724,134		682,390		650,243
Total current liabilities	3,283,243		3,096,503		3,328,223
Long-term debt	6,263,941		6,582,053		7,057,723
Pensions and other postretirement benefits	997,392		1,055,638		1,864,506
Deferred income taxes	568,369		553,981		449,699
Other liabilities	618,081		639,355		577,325
Shareholders' equity	8,490,781		8,398,307		6,640,599
Noncontrolling interests	15,064		15,363		15,285
Total liabilities and equity	$	20,236,871	$	20,341,200	$	19,933,360
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.

PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2021			Exhibit 99.1
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)	Three Months Ended September 30,
(Dollars in thousands)	2021		2020*
Cash flows from operating activities:
Net income	$	451,463	$	320,111
Depreciation and amortization	145,522		148,442
Share incentive plan compensation	57,666		58,461
Gain on disposal of property, plant and equipment	(30)		(498)
Loss (gain) on marketable securities	804		(340)
Gain on investments	(200)		(970)
Net change in receivables, inventories and trade payables	(137,074)		196,471
Net change in other assets and liabilities	(87,118)		4,207
Other, net	(6,674)		11,490
Net cash provided by operating activities	424,359		737,374
Cash flows from investing activities:
Capital expenditures	(48,203)		(42,117)
Proceeds from sale of property, plant and equipment	7,751		6,590
Purchases of marketable securities and other investments	(7,456)		(10,726)
Maturities and sales of marketable securities and other investments	5,312		49,107
Other	649		1,054
Net cash (used in) provided by investing activities	(41,947)		3,908
Cash flows from financing activities:
Net payments for common stock activity	(244,731)		(21,750)
Net payments for debt	(595)		(557,442)
Financing fees paid	(42,703)		—
Dividends paid	(132,921)		(113,542)
Net cash (used in) financing activities	(420,950)		(692,734)
Effect of exchange rate changes on cash	(997)		8,332
Net (decrease) increase in cash, cash equivalents and restricted cash	(39,535)		56,880
Cash, cash equivalents and restricted cash at beginning of year	733,117		685,514
Cash, cash equivalents and restricted cash at end of period	$	693,582	$	742,394
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.

PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2021	Exhibit 99.1
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE
(Unaudited)
(Amounts in dollars)	Fiscal Year 2022
Forecasted earnings per diluted share	$14.52 to $15.22
Adjustments:
Business realignment charges	0.27
Costs to achieve	0.05
Acquisition-related intangible asset amortization expense	2.44
Acquisition-related expenses	0.40
Tax effect of adjustments1	(0.73)
Adjusted forecasted earnings per diluted share	$16.95 to $17.65
1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.

EX-99.2

Parker Hannifin Corporation Fiscal 2022 First Quarter Earnings Presentation November 4, 2021 Exhibit 99.2

Forward-Looking Statements and Non-GAAP Financial Measures 2 Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. These statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “potential,” “continues,” “plans,” “forecasts,” “estimates,” “projects,” “predicts,” “would,” “intends,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and include all statements regarding future performance, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance and earnings projections of the company, including its individual segments, may differ materially from current expectations, depending on economic conditions within its mobile, industrial and aerospace markets, and the company's ability to maintain and achieve anticipated benefits associated with announced realignment activities, strategic initiatives to improve operating margins, actions taken to combat the effects of the current economic environment, and growth, innovation and global diversification initiatives. Additionally, the actual impact of changes in tax laws in the United States and foreign jurisdictions and any judicial or regulatory interpretation thereof on future performance and earnings projections may impact the company’s tax calculations. A change in the economic conditions in individual markets may have a particularly volatile effect on segment performance. The risks and uncertainties in connection with such forward-looking statements related to the proposed acquisition of Meggitt include, but are not limited to, the occurrence of any event, change or other circumstances that could delay the closing of the acquisition; the possibility of nonconsummation of the acquisition; the failure to satisfy any of the conditions to the acquisition (including the satisfaction of the conditions detailed in the Rule 2.7 announcement); the possibility that a governmental entity may prohibit the consummation of the acquisition or may delay or refuse to grant a necessary regulatory approval in connection with the acquisition, or that in order for the parties to obtain any such regulatory approvals, conditions are imposed that adversely affect the anticipated benefits from the acquisition or cause the parties to abandon the acquisition; adverse effects on Parker’s common stock because of the failure to complete the acquisition; Parker’s business experiencing disruptions due to acquisition-related uncertainty or other factors making it more difficult to maintain relationships with employees, business partners or governmental entities; the possibility that the expected synergies and value creation from the acquisition will not be realized or will not be realized within the expected time period; the parties being unable to successfully implement integration strategies; and significant transaction costs related to the acquisition. Readers should consider these forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021 and other periodic filings made with the Securities and Exchange Commission. Among other factors which may affect future performance are: the impact of the global outbreak of COVID-19 and governmental and other actions taken in response; changes in business relationships with and purchases by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms or significant changes in financial condition, changes in contract cost and revenue estimates for new development programs and changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the integration of LORD Corporation or Exotic Metals; the ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination to undertake business realignment activities and the expected costs thereof and, if undertaken, the ability to complete such activities and realize the anticipated cost savings from such activities; ability to implement successfully capital allocation initiatives, including timing, price and execution of share repurchases; availability, limitations or cost increases of raw materials, component products and/or commodities that cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; compliance costs associated with environmental laws and regulations; potential supply chain and labor disruptions, including as a result of labor shortages; threats associated with and efforts to combat terrorism and cyber-security risks; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; global competitive market conditions, including global reactions to U.S. trade policies, and resulting effects on sales and pricing; and global economic factors, including manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and general economic conditions such as inflation, deflation, interest rates and credit availability. The company makes these statements as of the date of this disclosure and undertakes no obligation to update them unless otherwise required by law. This presentation contains references to non-GAAP financial information, including adjusted earnings per share, adjusted operating margin for Parker and by segment, EBITDA, adjusted EBITDA, EBITDA margin, organic sales growth, and free cash flow. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before business realignment, Integration costs to achieve, acquisition related expenses, and other one-time items. Free cash flow is defined as cash flow from operations less capital expenditures. Although organic sales growth, adjusted earnings per share, adjusted operating margin for Parker and by segment, EBITDA, adjusted EBITDA, EBITDA margin and free cash flow are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the company performance for the period presented. Detailed reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures have been included in the appendix to this presentation. Please visit www.PHstock.com for more information

Outstanding Performance in FY22 Q1 3 ▪ Safety performance improvement: 17% reduction in recordable incidents ▪ Sales growth of 17% YoY; Organic growth 16% YoY ▪ Seven first quarter records: • Sales, Operating Margin, Net income, EPS • Segment Operating Margins for Industrial North America, International, Aerospace ▪ EBITDA margin was 20.6% as reported or 22.1% adjusted1, +210 bps vs. prior Parker FY22 Q1 FY21 Q1 Change Segment Operating Margin, As Reported 19.7% 16.8% Segment Operating Margin, Adjusted1 22.0% 19.9% 210+ bps 1. Adjusted numbers include certain non-GAAP financial measures. See Appendix for additional details and reconciliations.

What Drives Parker? Great Generators and Deployers of Cash Living Up to Our Purpose Top Quartile Performance vs. Proxy Peers 4

5

Parker’s Purpose in Action Expertise in Semiconductor Manufacturing 6 Process Control • Ultra high purity (UHP) valves • UHP pressure regulators • Flouropolymer valve manifolds Fluid & Gas Handling • Cooling hoses • Quick couplings Electromechanical • Solenoid actuation valves • Servo systems for wafer spinning Engineered Materials • Electromagnetic shielding • Load lock & chamber seals Parker Technologies Essential to the Digital Supply Chain Applications • Liquid & gas mobile transport • Bulk gas distribution at facility • Specialty chemical delivery • Valve manifold boxes • Semiconductor tool hookup • Fabrication tools Parker Technologies

Unmatched Breadth of Core Technologies HYDRAULICS PNEUMATICS ELECTRO- MECHANICAL FILTRATION FLUID & GAS HANDLING PROCESS CONTROL ENGINEERED MATERIALS CLIMATE CONTROL Partnering with our customers to increase their productivity and profitability From customers who buy 4 or more Parker technologies of Our Revenue: Enables clean technologies of Our Portfolio: 7 2/3’s2/3’s~ ~

$6.99 $8.86 $11.57 $13.10 $12.44 $15.04 FY16 FY17 FY18 FY19 FY20 FY21 FY22G Adjusted EPS1 1: Adjusted numbers include certain non-GAAP financial measures. See Appendix for additional details and reconciliations. $5.89 $7.25 $7.83 $11.57 $9.26 $13.35 $14.87As Reported EPS Performance Our People, Portfolio & Strategy Transform Performance 14.7% 16.7% 17.5% 18.3% 19.3% 21.3% FY16 FY17 FY18 FY19 FY20 FY21 Adjusted EBITDA1 8 $0.81B $0.98B $1.06B $1.53B $1.20B $1.75BAs Reported Net Income Increased 660 bps Midpoint $17.30 Midpoint2.5x EPS growth ~

Continued Progress on Meggitt Transaction 9 Compelling Strategic Aerospace Combination

11 Financial Summary FY22 Q1 vs. FY21 Q1 1. Sales figures As Reported. Adjusted numbers include certain non-GAAP financial measures. See Appendix for additional details and reconciliations. Note: FY21 Q1 As Reported: Segment Operating Margin of 16.8%, EBITDA Margin of 19.4%, Net Income of $320M, EPS of $2.45. $ Millions, except per share amounts Q1 FY22 Q1 FY22 Q1 FY21 YoY Change As Reported Adjusted¹ Adjusted¹ Adjusted Sales $3,763 $3,763 $3,231 +16.5% Segment Operating Margin 19.7% 22.0% 19.9% +210 bps EBITDA Margin 20.6% 22.1% 20.0% +210 bps Net Income $451 $557 $398 +40% EPS $3.45 $4.26 $3.05 +40%

12 Adjusted Earnings per Share Bridge FY21 Q1 to FY22 Q1 1. FY21 Q1 As Reported EPS of $2.45. FY22 Q1 As Reported EPS of $3.45. Adjusted numbers include certain non-GAAP financial measures. See Appendix for additional details and reconciliations.

13 FY22 Q1 Segment Performance Sales As Reported $ Organic %¹ Segment Operating Margin As Reported Segment Operating Margin Adjusted1 Order Rates2 Commentary $1,794M +16.9% Organic 18.6% 21.3% +30 bps YoY +32% • Strong execution in challenging environment • Record segment operating margin $1,376M +20.5% Organic 21.2% 22.8% +360 bps YoY +25% • Volume leverage • Continued distribution growth • Record segment operating margin $593M +3.4% Organic 20.0% 22.1% +400 bps YoY +16% • Strong commercial aftermarket • Favorable spares/repairs mix • Record segment operating margin $3,763M +15.8% Organic 19.7% 22.0% +210 bps YoY +26% • Price/cost margin neutral • Robust demand continues • 35% incremental margin1, 58% excluding prior year discretionary savings of $125m 1. Adjusted numbers include certain non-GAAP financial measures. See Appendix for additional details and reconciliations. 2. Order Rates exclude acquisitions, divestitures, & currency. Industrial is a 3 month YoY comparison of total dollars. Aerospace is a rolling 12 month YoY comparison. Diversified Industrial International Diversified Industrial North America Parker Aerospace Systems

14 FY22 Cash Flow Performance  Cash Flow from Operations of 11.3%  Free Cash Flow of 10.0%  Free Cash Flow Conversion of 83%  Net change in Working capital2 • Use of cash of 3.6% of sales 1. Adjusted numbers include certain non-GAAP financial measures. See Appendix for additional details and reconciliations. 2. Defined as net change in accounts receivable, inventory, and accounts payable trade per the statement of cash flows $ Millions % to Sales 11.3% 10.0% 22.8% 21.5% Forecast Mid-Teens CFOA for FY22

Capital Deployment Strategies Dividends: Maintain annual increase record • Target 5-year average payout 30-35% of net income Fund organic growth and productivity • Target capital expenditures 2% of sales Offset share dilution through 10b5-1 share repurchase program • Additional discretionary repurchase of $180M Meggitt financing update 15

16 FY22 Guidance Increased EPS Midpoint: $14.87 As Reported, $17.30 Adjusted Sales Growth vs. Prior Year Diversified Industrial North America 9% - 12% Diversified Industrial International 5% - 8% Aerospace Systems 3% - 6% Parker 6% - 9% Segment Operating Margins As Reported Adjusted1 Diversified Industrial North America 19.3% - 19.7% 22.0% - 22.4% Diversified Industrial International 19.8% - 20.2% 21.7% - 22.1% Aerospace Systems 18.5% - 18.9% 20.7% - 21.1% Parker 19.4% - 19.8% 21.7% - 22.1% Additional Items As Reported Adjusted1 Corporate G&A, Interest and Other $513M $461M Full Year Reported Tax Rate ~23% Diluted Shares Outstanding 130.8M Earnings Per Share As Reported Adjusted1 Range $14.52 - $15.22 $16.95 - $17.65 1. Adjusted numbers include certain non-GAAP financial measures. See Appendix for additional details and reconciliations.

Key Messages  Highly engaged global team delivering outstanding performance  Living up to our purpose  Top quartile performance  Strategic portfolio transformation 17 The Win Strategy™ 3.0 & Capital Deployment Accelerate Performance

Appendix • Reconciliation of Organic Growth • Adjusted Amounts Reconciliation • Reconciliation of EPS • Reconciliation of Total Segment Operating Margin to Adjusted Total Segment Operating Margin • Reconciliation of EBITDA to Adjusted EBITDA • Reconciliation of Free Cash Flow Conversion • Supplemental Sales Information – Global Technology Platforms • Reconciliation of Forecasted EPS 19

Reconciliation of Organic Growth (Dollars in thousands) (Unaudited) Quarter-to-Date As Reported Currency Organic As Reported Net Sales September 30, 2021 September 30, 2021 September 30, 2020 Diversified Industrial: North America $ 1,793,715 $ (7,927) $ 1,785,788 $ 1,528,111 International 1,376,436 (15,200) 1,361,236 1,129,251 Total Diversified Industrial 3,170,151 (23,127) 3,147,024 2,657,362 Aerospace Systems 592,658 107 592,765 573,178 Total Parker Hannifin $ 3,762,809 $ (23,020) $ 3,739,789 $ 3,230,540 As reported Currency Organic Diversified Industrial: North America 17.4 % 0.5 % 16.9 % International 21.9 % 1.4 % 20.5 % Total Diversified Industrial 19.3 % 0.9 % 18.4 % Aerospace Systems 3.4 % — % 3.4 % Total Parker Hannifin 16.5 % 0.7 % 15.8 % 20

Adjusted Amounts Reconciliation Consolidated Statement of Income (Dollars in thousands, except per share data) (Unaudited) Quarter-to-Date FY 2022 % of Sales Acquired Intangible Asset Amortization Business Realignment Charges Integration Costs to Achieve Acquisition Related Expenses % of Sales As Reported Adjusted September 30, 2021 September 30, 2021 Net Sales $ 3,762,809 100.0 % $ — $ — $ — $ — $ 3,762,809 100.0 % Cost of Sales 2,713,897 72.1 % — 1,001 651 — 2,712,245 72.1 % Selling, general, and admin. expenses 407,765 10.8 % 79,771 2,013 551 12,998 312,432 8.3 % Interest expense 59,350 1.6 % — — — — 59,350 1.6 % Other (income), net 10,052 0.3 % — — — 39,201 (29,149) (0.8)% Income before income taxes 571,745 15.2 % (79,771) (3,014) (1,202) (52,199) 707,931 18.8 % Income taxes 120,282 3.2 % 17,948 678 270 11,745 150,923 4.0 % Net Income 451,463 12.0 % (61,823) (2,336) (932) (40,454) 557,008 14.8 % Less: Noncontrollable interests 306 0.0 % — — — — 306 0.0 % Net Income - common shareholders $ 451,157 12.0 % $ (61,823) $ (2,336) $ (932) $ (40,454) $ 556,702 14.8 % Diluted earnings per share $ 3.45 $ (0.47) $ (0.02) $ (0.01) $ (0.31) $ 4.26 21

Adjusted Amounts Reconciliation Consolidated Statement of Income (Dollars in thousands, except per share data) (Unaudited) Quarter-to-Date FY 2021 % of Sales Acquired Intangible Asset Amortization Business Realignment Charges Lord Costs to Achieve Exotic Costs to Achieve As Reported Adjusted September 30, 2020* September 30, 2020* % of Sales Net sales $ 3,230,540 100.0 % $ — $ — $ — $ — $ 3,230,540 100.0 % Cost of sales 2,386,449 73.9 % — 12,150 331 — 2,373,968 73.5 % Selling, general and admin. expenses 369,851 11.4 % 81,703 2,987 3,284 332 281,545 8.7 % Interest expense 65,958 2.0 % — — — — 65,958 2.0 % Other (income) expense, net (4,892) (0.2)% — 564 — — (5,456) (0.2)% Income before income taxes 413,174 12.8 % (81,703) (15,701) (3,615) (332) 514,525 15.9 % Income taxes 93,063 2.9 % 18,792 3,611 831 76 116,373 3.6 % Net income 320,111 9.9 % (62,911) (12,090) (2,784) (256) 398,152 12.3 % Less: Noncontrolling interests 308 0.0 % — — — — 308 0.0 % Net income - common shareholders $ 319,803 9.9 % $ (62,911) $ (12,090) $ (2,784) $ (256) $ 397,844 12.3 % Diluted earnings per share $ 2.45 $ (0.48) $ (0.10) $ (0.02) $ — $ 3.05 *Prior periods have been adjusted to reflect the change in inventory accounting method 22

Adjusted Amounts Reconciliation Business Segment Information (Dollars in thousands) (Unaudited) Quarter-to-Date FY 2022 % of Sales Acquired Intangible Asset Amortization Business Realignment Charges Integration Costs to Achieve Acquisition Related Expenses % of Sales2 As Reported Adjusted September 30, 2021 September 30, 2021 Diversified Industrial North America1 $ 333,702 18.6 % $ 47,263 $ 953 $ 331 $ — $ 382,249 21.3 % International1 291,176 21.2 % 19,742 2,064 871 — 313,853 22.8 % Aerospace Systems1 118,251 20.0 % 12,766 (3) — — 131,014 22.1 % Total segment operating income 743,129 19.7 % (79,771) (3,014) (1,202) — 827,116 22.0 % Corporate administration 49,072 1.3 % — — — — 49,072 1.3 % Income before interest and other 694,057 18.4 % (79,771) (3,014) (1,202) — 778,044 20.7 % Interest expense 59,350 1.6 % — — — — 59,350 1.6 % Other (income) expense 62,962 1.7 % — — — 52,199 10,763 0.3 % Income before income taxes $ 571,745 15.2 % $ (79,771) $ (3,014) $ (1,202) $ (52,199) $ 707,931 18.8 % 1Segment operating income as a percent of sales is calculated on as reported segment sales. 2Adjusted amounts as a percent of sales are calculated on as reported segment sales. 23

Reconciliation of Earnings per Diluted Share to Adjusted Earnings per Diluted Share (Unaudited) Three Months Ended September 30, (Amounts in dollars) 2021 2020* Earnings per diluted share $ 3.45 $ 2.45 Adjustments: Acquired intangible asset amortization expense 0.61 0.63 Business realignment charges 0.02 0.12 Integration costs to achieve 0.01 0.03 Acquisition-related expenses 0.40 — Tax effect of adjustments1 (0.23) (0.18) Adjusted earnings per diluted share $ 4.26 $ 3.05 1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. *Prior periods have been adjusted to reflect the change in inventory accounting method 24

Reconciliation of Earnings per Diluted Share to Adjusted Earnings per Diluted Share 1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. *FY19 and FY20 have been adjusted to reflect the change in inventory accounting method 25

Reconciliation of Total Segment Operating Margin to Adjusted Total Segment Operating Margin (Unaudited) Three Months Ended Three Months Ended (Dollars in thousands) September 30, 2021 September 30, 2020 Operating income Operating margin Operating income Operating margin Total segment operating income $ 743,129 19.7 % $ 542,500 16.8 % Adjustments: Acquired intangible asset amortization expense 79,771 81,703 Business realignment charges 3,014 14,523 Integration costs to achieve 1,202 3,947 Adjusted total segment operating income $ 827,116 22.0 % $ 642,673 19.9 % 26

Reconciliation of EBITDA to Adjusted EBITDA (Unaudited) Three Months Ended September 30, (Dollars in thousands) 2021 2020* Net sales $ 3,762,809 $ 3,230,540 Net income $ 451,463 $ 320,111 Income taxes 120,282 93,063 Depreciation and amortization 145,522 148,442 Interest expense 59,350 65,958 EBITDA 776,617 627,574 Adjustments: Business realignment charges 3,014 15,701 Integration costs to achieve 1,202 3,947 Acquisition-related expenses 52,199 — Adjusted EBITDA $ 833,032 $ 647,222 EBITDA margin 20.6 % 19.4 % Adjusted EBITDA margin 22.1 % 20.0 % *Prior periods have been adjusted to reflect the change in inventory accounting method 27

1Amounts have been adjusted to reflect the change in inventory accounting method. *Totals may not foot due to rounding Reconciliation of EBITDA to Adjusted EBITDA 28

Reconciliation of Free Cash Flow Conversion (Unaudited) Three Months Ended September 30, 2021 Three Months Ended September 30, 2020*(Dollars in thousands) Net income $ 451,463 $ 320,111 Cash flow from operations $ 424,359 $ 737,374 Capital Expenditures (48,203) (42,117) Free cash flow $ 376,156 $ 695,257 Free cash flow conversion (free cash flow / net income) 83 % 217 % *Prior periods have been adjusted to reflect the change in inventory accounting method29

Supplemental Sales Information Global Technology Platforms (Unaudited) Three Months Ended September 30, (Dollars in thousands) 2021 2021 Net sales Diversified Industrial: Motion Systems $ 828,672 $ 657,141 Flow and Process Control 1,085,423 924,125 Filtration and Engineered Materials 1,256,056 1,076,096 Aerospace Systems 592,658 573,178 Total $ 3,762,809 $ 3,230,540 30

Reconciliation of EPS Fiscal Year 2022 Guidance (Unaudited) (Amounts in dollars) Fiscal Year 2022 Forecasted earnings per diluted share $14.52 to $15.22 Adjustments: Business realignment charges 0.27 Costs to achieve 0.05 Acquisition-related intangible asset amortization expense 2.44 Acquisition-related expenses 0.40 Tax effect of adjustments1 (0.73) Adjusted forecasted earnings per diluted share $16.95 to $17.65 1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. 31

XML

Cover	Nov. 04, 2021
Cover [Abstract]
Document Type	8-K
Document Period End Date	Nov. 04, 2021
Entity Registrant Name	PARKER-HANNIFIN CORPORATION
Entity Incorporation, State or Country Code	OH
Entity File Number	1-4982
Entity Tax Identification Number	34-0451060
Entity Address, Address Line One	6035 Parkland Boulevard
Entity Address, City or Town	Cleveland
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44124-4141
City Area Code	216
Local Phone Number	896-3000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Shares, $.50 par value
Trading Symbol	PH
Security Exchange Name	NYSE
Entity Central Index Key	0000076334
Amendment Flag	false