Parker Hannifin Corporation 2026 Annual Meeting of Shareholders - PARKER-HANNIFIN CORP

© BF-WATCH TV 2021 ¶¶ © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon © transcript Emily Beynon Thank you. Thank you. Good morning, everyone, and thank you for attending the Parker Hannifin Corporation 2016-2016 Annual Meeting of Shareholders. I'm Jenny Parmentier, Parker's Chairman of the Board and Chief Executive Officer. I'll be acting as Chairman of this meeting, and I'm pleased to call the meeting to order and give a warm welcome to our shareholders who are here in person or listening on the webcast. Sitting here next to me is Joe Leonti, Executive Vice President, General Counsel, and Secretary of Parker. Joe will be acting As Secretary of this Meeting. And I'd also like to introduce our director nominees and a few other Parker executives and representatives in attendance. Our director nominees, who are all here with us today, are Denise Russell-Fleming, Lance Fritz, Linda Hardy, Gene Savage, Laura Thompson, James Verrier, Jim Wainscott, Beth Wozniak, and myself. Along with Joe and I, we have many other company executives here today, including Andy Ross, President and Chief Operating Officer, and Todd Liam Bruno, Executive Vice President and Chief Financial Officer. And also present are Richard Kretz, a representative from Broadridge Financial Services, and Matt Pyros, a Representative from Deloitte & Touche LLP, our independent registered public accounting firm. Richard has been appointed to act as Inspector of election for this meeting and Matt will be available to answer appropriate questions about the company's financial statements during the question and answer period following this meeting. Before we move to our items of business for the meeting, I'd like to first acknowledge two other Parker leaders who are here with us today. First, Barron Brott, Vice President and President of our Motion Systems Group, will be retiring from Parker at the end of this calendar year. Barron has had an exceptional 35-year career as a leader in the industrial manufacturing sector, the last eight of which have been at Parker. He has been an outstanding leader for us, and we are grateful for the many positive impacts he's had on our team members and our business. We will certainly miss him, but look forward to continuing to work with him over the next couple months and properly thanking and celebrating him in the weeks ahead. Barren, thank you and congratulations on your well-deserved retirement. And second, I'd also like to acknowledge Kevin Lobo, one of our current directors, who is retiring from our board as of today. Kevin has served on our board since July 2013, is a truly exceptional director and person, and his leadership, expertise, and support has been instrumental to our success over the course of his tenure. Kevin, on behalf of our board and leadership team, I'd like to extend our heartfelt gratitude to you for your many years of leadership dedication, and extensive contributions to Parker. You served our board and shareholders with distinction. Barron and Kevin, thank you again, and we wish you and your families great health and happiness in the years ahead. Please join me in thanking Barron and Kevin by giving them a big round of applause. Thank you. Before we move on to our voting items, I'd first like to turn it over to Joe joe to cover a few procedural matters thank you jenny good morning everyone i'd also like to personally thank baron and kevin for all their outstanding leadership and support over the years it's been an absolute honor to work with them and uh we they're leaving tremendous legacies that we're all going to benefit from for many years to come so thank you both for everything you've done for partner and for our shareholders so as jenney mentioned i would like to cover a few procedure items here today uh first today's meeting is being held pursuant to our notice of Annual Meeting of Shareholders and Proxy Statement that was dated and filed with the U.S. Securities and Exchange Commission on September 18th, 2026. That notice and proxy statement was also mailed starting on September 8th to all of our shareholders of record as of the close of business on September 4th, 2020. Second, those that are here in person have a copy of today's agenda and rules of conduct to make sure that we have an orderly meeting. We're going to need everybody to abide by the rules of contact. And to quickly review the agenda, what we'll do is first conduct the Annual Meeting of Shareholders. There we'll present the three voting items, collect any remaining ballots or proxy cards, close the polls and announce the preliminary voting results. We will then adjourn the meeting and then Jenny will make a few closing comments and we'll have a brief question and answer period. Third, in my capacity as Secretary, I do deliver and present the following documents. These will all be referenced and incorporated into the minutes of this meeting. I have the minutes of our last Annual Meeting Shareholders, which is held on October 22nd, 2025. The financial statements of the company for the fiscal year ended June 30th, 2026, certified by Deloitte & Touche LLP. I have an affidavit of mailing that noticed that today's annual meeting was duly given, and I have a list of the companies' shareholders of record as of September 4th, 2026 certified by our transfer agent, Equinity Trust Company. Fourth, all shareholders of records of the close of business on September 4, 2027 are entitled to vote here today at the Annual Meeting of Shareholders. So we ask if there's any record date shareholders who are present and they're either still holding proxies or wanting to vote here in person, please come down and see Mr. Kretz right now. Okay. Thank you. And the last thing I'd like to report is that Mr. Kretzt has advised that there are present in-person or by proxy at least 112 million shares of Parker Common stock. That represents over 88% of our issued and outstanding common shares and it's a quorum for the transaction of business that concludes the procedural matters i wanted to cover so i'll turn back over to jenny to take us through our voting matters thank you joe there are three proposals being voted on here today the first proposal is the election of directors our boat our board has nominated and recommends voting for the election of the following nine individuals to serve as directors for one-year terms expiring at the 2027 annual meeting of shareholders denise russell fleming lance fritz linda hardy jenny parmentier jean savage laura thompson james barrier jim wainscott and beth wosniak the second proposal is to approve the compensation of our named executive officers on a non-binding advisory basis our board also recommends a vote for this proposal and the third proposal is to ratify the appointment of Deloitte and Touche LLP as our independent registered public accounting firm for the fiscal year ending June 30th, 2027. Our Board also recommends a vote for this proposal. Those are the three proposals being voted on today. Are there any questions or comments on those proposals? The Inspector of Election will now collect any remaining outstanding balance or proxy cards the votes are now in and i declare the polls closed joe please go ahead and review the preliminary vote results thank you jenny so based on the preliminary result each of the director nominees has been elected the compensation of our named executive officers has been approved on a non-binding advisory basis and the appointment of deloitte and touche as our independent registered public accounting firm for fiscal year 2027 has been ratified please note that the final report of our inspector of election will include any ballots that were collected before the polls closed and that were not included in this preliminary report after our inspector of election certifies and issues this final report we'll file a form ak with the sec disclosing the final vote results jenny that concludes my report thank you joe with no further business to be addressed at the 2026 annual meeting of shareholders the meeting is now formally adjourned before we move into q a i just want to remind everyone that we'll be updating investors on our fiscal year 27 first quarter performance in our next earnings webcast which is scheduled for november 5th 2026 at 11 a.m eastern time and i'd also like to make a few brief comments on the business as we reflect on fiscal year 26 we delivered another year of record performance this was our safest year ever underscoring the care and commitment our team members bring to their work every day and we also exceeded 20 billion in sales for the first time in parker's history and surpassed our fiscal year 29 adjusted segment operating margin target three years ahead of schedule demonstrating the strength resilience and capability of our business our fiscal year 26 results reflect our disciplined execution of the wind strategy the benefits of our ongoing portfolio transformation and the value of our decentralized operating structure interconnected technologies and deep customer relationships we also made and announced strategic acquisitions that further build and strengthen our technology offerings and give our team members and channel partners more ways to create value for customers we enhanced our electrification capabilities with the acquisition of curtis instruments in september 2025. in may 2026 we announced the pending acquisition of circourse commercial and defense aerospace business adding complementary flight critical capabilities and in august 2026 we completed our acquisition of filtration group corporation which expands our offering of proprietary filtration technology i am incredibly proud of our team members around the world for their hard work continuous improvement mindset and unwavering focus on serving our customers supporting one another and once again delivering exceptional results looking ahead we are confident in parker's ability to build on this momentum we are well positioned to continue creating value through the strength of our business system our engineering expertise our broad and interconnected technology portfolio and the dedication of our team members while we remain focused on executing through whatever conditions lie ahead i believe parker's future is exceptionally bright thank you to our team members for all you do and to our shareholders for your continued confidence and partnership as we continue on our journey from better to best with that if there are any questions from the floor we will now open it up for a brief q a period on behalf of our board of directors and our team members around the world thank you for attending and participating today and for your continuing support of parker hannifin corporation We're keeping track of time here.