Slide 1: Third Quarter 2023 Earnings Review
Third Quarter 2023 Earnings Review October 31, 2023 2023 Q3 Earnings Review
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They involve a number of risks and uncertainties that
Slide 3: Q3 2023 Update
Q3 2023 Update Eric Vaillancourt President & Chief Executive Officer
Slide 4: Semiconductor Market Widely Expected to Double Over The Next Decade
Semiconductor Market Widely Expected to Double Over The Next Decade Semiconductor Industry Trends* AST Semiconductor Strategy NxEdge – Technetics Semi – LeanTeq Chip Architectures Evolving and Increasing in Complexity Technology Differentiation Advanced Processing Nodes Enable Artificial Intelligenc
Slide 5: Overview of Financial Results
Overview of Financial Results Milt Childress Executive Vice President & Chief Financial Officer
Slide 6: Q3 2023 Financial Performance
Q3 2023 Financial Performance $ in millions, except per share data Sales Gross Profit & Margin Adjusted EBITDA* & Margin* Adjusted Diluted EPS* -10.5% +17 bps -19.1% -16.4% • Strong nuclear energy and • Gross margin relatively flat as • Adjusted EBITDA* of $57.7 million • Adjusted diluted earnings p
Slide 7: Sealing Technologies – Q3 2023 Performance
Sealing Technologies – Q3 2023 Performance $ in millions Sales Adjusted EBITDA & Margin +20.9% +2.2% • Sales increase driven by pricing initiatives and strong demand in • Adjusted segment EBITDA of $48.0 million increased 20.9% compared nuclear energy and commercial vehicle aftermarket, offset in pa
Slide 8: Advanced Surface Technologies – Q3 2023 Performance
Advanced Surface Technologies – Q3 2023 Performance $ in millions Sales Adjusted EBITDA & Margin -27.0% -52.4% • Sales decrease driven primarily by the current slowdown in • Adjusted segment EBITDA decrease driven primarily by the decline in semiconductor capital equipment spending and wafer starts
Slide 9: Balance Sheet, Cash Flow & Capital Allocation
Balance Sheet, Cash Flow & Capital Allocation $ in millions Net Leverage Commentary Reported September 30, 2023 Revolving Credit Facility $ — • Free cash flow* for the nine months ended Term Loan(1,2) $ 301 September 30, 2023 was $134.1M, up from $101.4M in the prior year Senior Notes(1) $ 350 • Str
Slide 10: Closing Comments
Closing Comments Eric Vaillancourt President & Chief Executive Officer
Slide 11: ef ) oO ©
ef ) oO ©
Slide 12: Appendix
Appendix ©
Slide 13: Enpro Best-in Class Portfolio of Leading-Edge Businesses
Enpro (NYSE: NPO) | Best-in Class Portfolio of Leading-Edge Businesses September 2023 YTD Revenue Contribution Sales by Segment Sales by Channel Sales by Geography Sales by Market 13 Headquarters Principal Global Charlotte, Manufacturing Employees NC and Service ~3,500 Facilities Financial Overview
Slide 14: Select Semiconductor Industry Outlook Commentary
Select Semiconductor Industry Outlook Commentary 1 2 3 4 1: Source: Applied Materials Q3 Fiscal 2023 Earnings Presentation, August 2023 2: Source: KLA Q1 Fiscal 2024 Earnings Presentation, October 2023 3: Source: ASM, Q3 2023 Earnings Presentation, Oct 2023 4: Source: ASML Investor Day 2022, Novembe
Slide 15: Reconciliation of LTM Results
Reconciliation of LTM Results EnPro Industries, Inc. Adjusted Adjusted ($ in millions) Revenue EBITDA EBITDA Margin Nine Months Ended September 30, 2023 $ 810.2 $ 191.1 23.6% Plus: Year Ended December 31, 2022 1,099.2 257.4 23.4% Less: Nine Months Ended September 30, 2022 827.3 203.9 24.6% LTM Ended
Slide 16: Consolidated Adjusted EBITDA (1/2)
Consolidated Adjusted EBITDA (1/2) For the Year Ended December 31, 2022 (In Millions) 2022 1Non-controlling interest compensation allocation Income from continuing operations attributable to EnPro Industries, Inc., net represents compensation expense associated with a of tax $ 6.7 portion of the rol
Slide 17: Consolidated Adjusted EBITDA (2/2)
Consolidated Adjusted EBITDA (2/2) For the Quarters and Nine Months Ended September 30, 2023 and 2022 (In Millions) Quarters Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Income from continuing operations attributable to EnPro Industries, Inc. $ 8.3 $ 26.2 $ 15.7 $ 64.2 Net
Slide 18: Segment Information (1/2)
Segment Information (1/2) For the Quarters and Nine Months Ended September 30, 2023 and 2022 (In Millions) Reconciliation of Adjusted Segment EBITDA to Income from Continuing Operations Attributable to EnPro Industries, Inc. Quarters Ended Nine Months Ended Sales September 30, September 30, Quarters
Slide 19: Segment Information (2/2)
Segment Information (2/2) For the Quarters and Nine Months Ended September 30, 2023 and 2022 (In Millions) Quarter Ended September 30, 2022 Quarter Ended September 30, 2023 Advanced Advanced Sealing Surface Total Sealing Surface Total Technologies Technologies Segments Technologies Technologies Segm
Slide 20: Consolidated Adjusted Net Income
Consolidated Adjusted Net Income (In Millions, Except Per Share Data) Quarters Ended September 30, (In Millions, Except Per Share Data) Nine Months Ended September 30, 2023 2022 Average Average 2023 2022 common common Average Average shares shared common common outstanding, Per outstanding, Per shar
Slide 21: Free Cash Flow
Free Cash Flow (In Millions) Free Cash Flow - Nine Months Ended September 30, 2023 Net cash provided by operating activities $ 154.8 Purchases of property, plant, and equipment (20.7) $ 134.1 Free Cash Flow - Nine Months Ended September 30, 2022 Net cash provided by operating activities $ 111.6 Purc