Slide 1: Second Quarter 2023 Earnings Review
Second Quarter 2023 Earnings Review August 8, 2023
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: Q2 2023 Update
Q2 2023 Update Eric Vaillancourt President & Chief Executive Officer
Slide 4: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights Outstanding Execution Consistent Quarterly Results Strategic Focus Strong sales and earnings in Sealing Sustained benefits from the balanced, Remain focused on leading- Technologies offset weakness transformed portfolio and execution on edge critical products and expec
Slide 5: Overview of Financial Results
Overview of Financial Results Milt Childress Executive Vice President & Chief Financial Officer
Slide 6: Q2 2023 Financial Performance
Q2 2023 Financial Performance $ in millions, except per share data Sales Gross Profit & Margin Adjusted EBITDA* & Margin* Adjusted Diluted EPS* ~Flat ~100 bps -11.9% -10.7% • Positive momentum in the aerospace, • Gross margin expansion driven primarily • Adjusted EBITDA* of $64.9 million • Adjusted
Slide 7: Sealing Technologies – Q2 2023 Performance
Sealing Technologies – Q2 2023 Performance $ in millions Sales Adjusted Segment EBITDA & Margin +13.3% +27.4% • Sales increase driven by strong demand in the aerospace, • Adjusted segment EBITDA of $56.2 million increased 27.4% nuclear and commercial vehicle markets, along with the compared to the p
Slide 8: Advanced Surface Technologies – Q2 2023 Performance
Advanced Surface Technologies – Q2 2023 Performance $ in millions Sales Adjusted EBITDA & Margin -17.4% -36.2% • Sales decrease driven primarily by softness in the • Adjusted segment EBITDA decrease driven primarily by the semiconductor market, and to a lesser extent, lower optical decline in volume
Slide 9: Balance Sheet, Cash Flow & Capital Allocation
Balance Sheet, Cash Flow & Capital Allocation $ in millions Net Leverage Commentary Reported June 30, 2023 Revolving Credit Facility $ — • Strong balance sheet with ample liquidity Term Loans(1,2) $ 436 • Free cash flow* for the six months ended June 30, 2023 Senior Notes(1) $ 350 was $66.6M, up fro
Slide 10: 2023 Guidance
2023 Guidance Previous 2023 Current 2023 Guidance* Guidance* Assumptions (at August 8, 2023) (at May 2, 2023) Revenue Flat – Low Single Flat ~$95-96M Growth Digit Growth Depreciation and Amortization Adjusted ~$32-34M $248M – $260M $248M – $256M EBITDA** Net Interest Expense 25% Adjusted Normalized
Slide 11: Closing Comments
Closing Comments Eric Vaillancourt President & Chief Executive Officer
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Slide 13: Appendix
Appendix ©
Slide 14: Best-in Class Portfolio of Leading-Edge Businesses
Enpro (NYSE: NPO) | Best-in Class Portfolio of Leading-Edge Businesses June 2023 YTD Revenue Contribution Sales by Segment Sales by Channel Sales by Geography Sales by Market 13 Headquarters Principal Global Charlotte, Manufacturing 46% Employees NC and Service 54% ~3,500 Facilities Financial Overvi
Slide 15: Reconciliation of LTM Results
Reconciliation of LTM Results EnPro Industries, Inc. Adjusted Adjusted ($ in millions) Revenue EBITDA EBITDA Margin Six Months Ended June 30, 2023 $ 559.5 $ 133.4 23.8% Plus: Year Ended December 31, 2022 1,099.2 257.4 23.4% Less: Six Months Ended June 30, 2022 547.2 132.6 24.2% LTM Ended June 30, 20
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 Six Months Ended June 30, 2023 and 2022 (In Millions) Quarters Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Income (loss) from continuing operations attributable to EnPro Industries, Inc. $ (18.6) $ 26.1 $ 7.4 $ 38.0 Net income
Slide 18: Segment Information (1/2)
Segment Information (1/2) For the Quarters and Six Months Ended June 30, 2023 and 2022 (In Millions) Reconciliation of Adjusted Segment EBITDA to Income (Loss) from Continuing Operations Attributable to EnPro Industries, Inc. Quarters Ended Six Months Ended Sales June 30, June 30, Quarters Ended Six
Slide 19: Segment Information (2/2)
Segment Information (2/2) For the Quarters and Six Months Ended June 30, 2023 and 2022 (In Millions) Quarter Ended June 30, 2022 Quarter Ended June 30, 2023 Advanced Advanced Sealing Surface Total Sealing Surface Total Technologies Technologies Segments Technologies Technologies Segments Acquisition
Slide 20: Consolidated Adjusted Net Income
Consolidated Adjusted Net Income (In Millions, Except Per Share Data) Quarters Ended June 30, (In Millions, Except Per Share Data) Six Months Ended June 30, 2023 2022 Average Average 2023 2022 common common Average Average shares shared common common outstanding, Per outstanding, Per shares shared $
Slide 21: Free Cash Flow
Free Cash Flow (In Millions) Free Cash Flow - Six Months Ended June 30, 2023 Net cash provided by operating activities $ 78.5 Purchases of property, plant, and equipment (11.9) $ 66.6 Free Cash Flow - Six Months Ended June 30, 2022 Net cash provided by operating activities $ 63.0 Purchases of proper