Worthington Enterprises, Inc. · NYSE:WOR
Worthington Enterprises — Q2 2024 Earnings Presentation
28 slides from Worthington Enterprises's earnings presentation, Dec 20, 2023
Slide 1: IR Overview: Q2 FY2024
ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx IR OVERVIEW: Q2 FY2024
Slide 2: Notes to Investors
Notes to Investors FORWARD-LOOKING STATEMENTS. Selected statements in this presentation constitute “forward-looking statements,” as that term is used in the Private Securities Litigation Reform Act of 1995 (the “Act”). Worthington Enterprises, Inc. (the “Company” or “Worthington”) wishes to take adv
Slide 3: Notes to Investors
Notes to Investors PRO FORMA FINANCIAL INFORMATION. Unless otherwise specified, all financial data and operating metrics included in these materials are presented on a pro forma basis giving effect to the reorganization and the separation of the Steel Processing business, which occurred on December
Slide 4: Worthington Enterprises
ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx WORTHINGTON ENTERPRISES A market-leading designer and manufacturer of innovative Building Products, Consumer Products, and Sustainable Energy So
Slide 5: Key Investment Highlights
Worthington Enterprises FOUNDED IN KEY INVESTMENT HIGHLIGHTS 1955 • Established Portfolio of Market-Leading Brands with High Barriers to Entry NET SALES OF • Strong Underlying Secular Trends Enabling Steady $1.3 BILLION1 Long-Term Growth • Business Model Drives High Free Cash Flow and Returns • Wort
Slide 6: Established Portfolio of Market-Leading Brands
Established Portfolio of Market-Leading Brands… 80%+ of Adjusted EBITDA comes from brands and products with leading market positions Ceiling Metal Hand Torch Camping Portable Vertical Well Water Suspension Framing And Fuels Fuel Helium Tanks Residential Tanks Systems Heating Tanks Note: FY2023 perio
Slide 7: With High Barriers-to-Entry and Returns
High Margin, Asset-Light Business Model, Generating Strong Cash Flow …With High Barriers-to-Entry and Returns Highly Engineered Solutions – Meeting Rigorous Specifications in Highly Regulated Markets Reliability, Speed & Product Quality – Exceptional Quality, Service, and Supply Chain Solutions Robu
Slide 8: Our Products Serve Markets Positioned for Strong Secular Trends
Our Products Serve Markets that are Well Positioned to Capitalize on Strong Secular Trends GOVERNMENT STIMULUS ENVIRONMENTAL RE-SHORING AND AND SUPPORT POPULATION SHIFT INVESTMENT NEAR SHORING Ceiling Metal HVAC H2 & CNG Propane Refillable Lawn & BBQ / Foam & Industrial Metal HVAC Tools Systems Solu
Slide 9: Business Model Drives Strong Returns
Business Model Drives Strong Returns Net Sales ($M) Adjusted EBITDA1 ($M) 16% 20% CAGR CAGR $1,418 $1,325 $1,311 $319 $302 $280 $1,061 $205 FY2021 FY2022 FY2023 TTM FY2021 FY2022 FY2023 TTM Note: TTM figures as of Q2 FY24. 1 Refer to appendix for reconciliation of Adjusted EBITDA to the comparable G
Slide 10: Worthington Business System Accelerates Our Growth and Profitability
Worthington Business System Accelerates Our Growth and Profitability Our deeply-held Philosophy is rooted in the Golden Rule – we treat our customers, employees, investors, and suppliers as we would like to be treated • Through continuous transformation we drive higher margins within Manufacturing,
Slide 11: Innovation for Highly Engineered Products Drives Incremental Sales and Margin
Innovation for Highly Engineered Products Drives Incremental Sales and Margin 01 02 03 BUILDING EXPANDING DISRUPTING THE CORE THE CORE THE CORE Improving existing Transformational Strength in channel products with a innovations driving management to drive leading brand sustainable value margin expan
Slide 12: Guided by Our Philosophy
Guided by Our Philosophy A People-First, Performance-Based Culture Culture of Health & Positive Diversity & Profit-Sharing Engagement Safety Impact Inclusion Incentives Strong sense of Putting our people Partnering with Valuing diversity of Committed to best- belonging and first and ensuring the org
Slide 13: Low Leverage and Ample Liquidity Provides Financial Flexibility
Low Leverage and Ample Liquidity Provides Financial Flexibility Strong Leverage after separation1: 1.1x Balance Sheet Total Debt / TTM Adj. EBITDA Commitment to Maintaining Financial Investment Flexibility Grade Rating Disciplined Liquidity at Close2: Capital $716M Allocation Note: TTM figures as of
Slide 14: Building Products at a Glance
Building Products at a Glance Brands Key Figures Financial Metrics (TTM as of Q2 FY24) ($ Millions) Net Sales $551M WAVE 50% owned JV $586 $551 $542 Industry Leader With Innovation and Product Specification Driving High Barriers $402 to Entry in Attractive End-Markets Net Sales 39% Wholly-owned busi
Slide 15: Consumer Products at a Glance
Consumer Products at a Glance SEGMENT OVERVIEW KEY FIGURES FINANCIAL METRICS (TTM as of Q2 FY24) ($ Millions) Value-added partner to customers, featuring a Net Sales wide variety of highly engineered products across $686 $641 $641M $636 Tools, Outdoor Living, and Celebrations $524 TOOLS OUTDOOR LIVI
Slide 16: Sustainable Energy Solutions at a Glance
Sustainable Energy Solutions At a Glance Supporting the growing hydrogen ecosystem and adjacent sustainable energies with products including: Slupsk, Poland • On-board fueling systems and services T3 Onboard fueling • Gas containment solutions and services for the Burscheid, systems and storage, tra
Slide 17: A Compelling Financial Profile
A Compelling Financial Profile Adj. EBITDA Net Sales Adj. EBITDA1 Margin $1,325M $280M 21% Net Working Fixed Assets3 FCF Conversion4 Capital2 $320M $271M 82% Note: TTM figures as of Q2 FY2024. 1 Refer to appendix for reconciliation of Adjusted EBITDA to the comparable GAAP measure. 2 Net Working Cap
Slide 18: Best-in-Class Financial Profile with Attractive Upside
Best-in-Class Financial Profile with Attractive Upside High Margin, High Cash Flow, Asset Light, and Low Leverage Adj. EBITDA Margin % (FY2023) FCF Conversion (FY2023)1 40 % 100 % 86 % Peer Average: 80 % 30 % 80 % 21 % Peer Average: 19 % 60 % 20 % 40 % 10 % 20 % 0% 0% AWI WE AAON AOS GTLS FBIN LECO
Slide 19: Long-Term Capital Allocation Priorities
Long-Term Capital Allocation Priorities • Brand, Innovation, and Channel investments ORGANIC GROWTH • Investments in automation and R&D initiatives • High-returning Capex investments • Build out core businesses and selectively grow into new markets TARGETED M&A • Create value via channel and supply
Slide 20: Key Investment Highlights
Worthington Enterprises FOUNDED IN KEY INVESTMENT HIGHLIGHTS 1955 • Established Portfolio of Market-Leading Brands with High Barriers to Entry NET SALES OF • Strong Underlying Secular Trends Enabling Steady $1.3 BILLION1 Long-Term Growth • Business Model Drives High Free Cash Flow and Returns • Wort
Slide 21: Appendix
ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx Appendix
Slide 22: Reconciliation of Non-GAAP Measures – FY24 Q2 TTM
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY24 Q2 TTM (in thousands) 22
Slide 23: Reconciliation of Non-GAAP Measures – FY24 Q2 TTM
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY24 Q2 TTM (in thousands) Twelve Months Ended November 30, 2023 Non-GAAP Footnotes: (1) Separation costs reflect direct and incremental costs incurred in connection with the planned separation and are held at the corporate level. (2) Exc
Slide 24: Reconciliation of Non-GAAP Measures – FY24 Q2
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY24 Q2 (in thousands) Three Months Ended November 30, 2023 Worthington Sustainable Enterprises Consumer Building Energy Corporate & Consolidated Products Products Solutions Other Net sales $ 298,263 $ 147,738 $ 122,954 $ 27,537 $ 34 Oper
Slide 25: Reconciliation of Non-GAAP Measures – FY23 Q2
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY23 Q2 (in thousands) Three Months Ended November 30, 2022 Worthington Sustainable Enterprises Consumer Building Energy Corporate & Consolidated Products Products Solutions Other Net sales $ 333,594 $ 153,795 $ 141,671 $ 38,128 n/a Opera
Slide 26: Reconciliation of Non-GAAP Measures – FY23
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY23 (in thousands) Twelve Months Ended May 31, 2023 Worthington Sustainable Enterprises Consumer Building Energy Corporate & Consolidated Products Products Solutions Other Net sales $ 1,418,496 $ 686,319 $ 586,059 $ 146,118 n/a Operating
Slide 27: Reconciliation of Non-GAAP Measures – FY22
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY22 (in thousands) 27
Slide 28: Reconciliation of Non-GAAP Measures – FY21
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY21 (in thousands) 28
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