Investor Overview
March 2024
Forward-Looking Statements
and Non-GAAP Measures
Statements made in this presentation that are not historical are forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. The terms "outlook," "guidance," "may," "should," "could," "anticipate," "believe," "estimate," "expect," "objective," "plan," "project" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results or events to differ materially from those contemplated by such forward-looking statements. Risks and uncertainties, that may cause actual results or events to differ materially from those contemplated by such forward- looking statements include, without limitation, general economic uncertainty, market conditions in the industrial, oil & gas, energy, power generation, infrastructure, commercial construction, truck and automotive industries, the impact of geopolitical activity, including the invasion of Ukraine by Russia and international sanctions imposed in response thereto, as well as the armed conflict involving Hamas and Israel, the ability of the Company to achieve its plans or objectives related to its growth strategy, market acceptance of existing and new products, market acceptance of price increases, successful integration of acquisitions, the impact of dispositions and restructurings, the ability of the Company to continue to achieve its objectives related to the ASCEND program, including any assumptions underlying its calculation of expected incremental operating profit or program investment, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, risks related to reliance on independent agents and distributors for the distribution and service of products, material, labor, or overhead cost increases, tax law changes, foreign currency risk, interest rate risk, commodity risk, tariffs, litigation matters, impairment of goodwill or other intangible assets, the Company's ability to access capital markets and other risks and uncertainties that may be referred to or noted in the Company's reports filed with the Securities and Exchange Commission from time to time, including those described in the Company's Form 10-K for the fiscal year ended August 31, 2023 and most recent report on Form 10-Q. Enerpac Tool Group disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason. All estimates of future performance are as of December 19, 2023.
This presentation also contains financial measures that are not measures presented in conformity with GAAP. These non-GAAP measures include organic sales, EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted earnings from continuing operations, adjusted diluted earnings per share from continuing operations, adjusted operating profit from continuing operations, segment adjusted operating profit and adjusted EBITDA, adjusted SG&A, free cash flow and net debt. The supplemental financial schedules appended at the end of this presentation include reconciliations of these non-GAAP measures to the most comparable GAAP measure. Enerpac Tool Group acknowledges that there are many items that impact a company's reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.
2
Strong Investment Potential
Premier industrial solutions provider serving
a broad and diverse set of customers globally for mission- critical applications
Exceptional channel partner network built over decades, creates competitive moat and enables truly global coverage
Well-defined organic growth strategy: expansion in targeted vertical markets, digital transformation, customer-driveninnovation, and expansion in Asia Pacific
ASCEND transformation structurally improving margin profile through commercial initiatives, operational efficiency improvements, and greater productivity in SG&A
Strong balance sheet & solid FCF generation enables a balanced capital allocation approach: investments to drive organic growth, strategic M&A, and opportunistic share repurchases
3
History of Enerpac Tool Group
Actuant (Spin-off From Applied Power) Was a Small Cap Diversified Industrial, With Enerpac as the Crown Jewel
2019
2021
PAUL STERNLIEB
YEARS OF
EXCELLENCE
2000
1927
1987
Applied Power
1910
American Grinder
& Manufacturing
2016-2021
Focused On:
- Realigning Segments and Portfolio Optimization
- Selling Non-core Businesses Including the EC&S Segment
- Rebranding as Enerpac Tool Group
Joins Enerpac as CEO
With Goals To:
- Take Organization to Next Level of Growth and Profitability
- Launch a Deep Dive, Holistic Review
- Flatten Organization
- Transform the Company via the ASCEND Program
- Develop and Launch New Growth Strategy
4
Accelerated Performance With ASCEND
Transformation & Growth Strategy
($ in millions, except per share)
Net Sales & Organic Growth*
Adjusted EBITDA & Margin (%)**
$598
$571
$529
+8%
organic
+11%
organic
$75
$136
22.8%
$83
+5%
organic
14.5%
14.1%
FY21 | FY22 | FY23 | FY21 | FY22 | FY23 |
*Organic revenue growth excludes the impact of foreign exchange rates, acquisitions, and dispositions. **Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures and exclude restructuring and other | |
charges identified in the accompanying reconciliations to GAAP measures. FY22 Adjusted EBITDA includes $13M charge for increase in MENAC accounts receivable reserve, an approximate 230 bps impact to margin. | 5 |
Business Overview
6
Premier Industrial Solutions Provider
OUR
MISSION
WE MAKE
COMPLEX,
OFTEN HAZARDOUS JOBS POSSIBLE
SAFELY AND
EFFICIENTLY
OUR
VALUES
SAFETY TEAMWORK
INTEGRITY AGILITY
OWNERSHIP
STRATEGIC PILLARS
HARD TO DO
TARGET MARKET
LEADERSHIP
SIMPLIFIED AND
STANDARDIZED PROCESSES
AND OPERATIONS
100+
Countries Served
~2100
Global Employees
~1000
Distributors
~$1.8B
Market Cap*
* As of March 1, 2024 | 7 |
Geographic
Diversity
EMEA | |
37% | |
SALES OF | |
$598M | |
IN FISCAL 2023 | |
Americas | APAC |
14% | |
49% | |
GLOBAL | PLANT | OFFICE | OTHER |
HEADQUARTERS | Manufacturing/Assembly | Sales Office/General Office | Service Center/Warehouse/Other |
GLOBAL COVERAGE
ALLOWS US TO
Better Serve Our
Customers
Producing Near
Our Customers
=
Quicker
Response Time
Understanding
Local Market Needs
and Demand
Some Projects
Require In-country
Production
Low-cost
Manufacturing/
Sourcing Drives
Competitive Margins
Geographic
Diversification of Sales
Reduces Exposure to
Regional Economic
Volatility
8
Large, Fragmented
Vertical Markets Provide
Growth Opportunities
FY23 Estimated End-Market Exposure*
Refining/Petrochemical | ~27% |
General Industrial | ~23% |
Industrial MRO, Machining, & Mfg | ~14% |
Power Generation | ~10% |
Infrastructure | ~9% |
Mining | ~9% |
Other | ~8% |
*Represents the Company's best estimate of end market revenues by category. Estimated revenue mix for Rail is included in the Infrastructure category and Wind is included in Power Generation. The "Other" | |
category includes the Company's best estimated exposure to Shipbuilding, Automotive, Aerospace, Off-Hwy Vehicle Repair, Military, Paper & Wood, Marine, Rescue, and other. | 9 |
Globally Recognized
Leader in Industrial
Tools and Services
STRONG BRAND
RECOGNITION
PREMIUM INDUSTRIAL TOOLS
HEAVY LIFTING
FY23 Revenue Mix
PRODUCTS
Cylinders/Jacks, Pumps,
Bolting Tools, Presses,
Pullers, Tools, Heavy
Lifting Technology (HLT)
EXTENSIVE GLOBAL DISTRIBUTION
~1,000 Long-standing Distribution Relationships
SERVICE & RENTAL
Bolting, Machining
and Joint Integrity
DIVERSIFIED CUSTOMER BASE
Specialty Dealers
National Distribution
Large OEMs
SERVICE RENTAL TRAINING
18%
82%
Product Service
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Enerpac Tool Group Corporation published this content on 11 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 March 2024 20:45:50 UTC.