Worthington Enterprises, Inc. · NYSE:WOR
Worthington Enterprises — Worthington Industries — Baird 2021 Virtual Global Industrials Conference
33 slides from Worthington Enterprises's conference presentation, Nov 11, 2021
Slide 1: Worthington Industries
Worthington Industries Joe Hayek – Chief Financial Officer 2021 Virtual Global Industrials Conference November 11, 2021
Slide 2: Safe Harbor
Safe Harbor Worthington Industries wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995 (the “Act"). Statements by the Company which are not historical information constitute "forward looking statements" within the meaning of the Act
Slide 3: Net Sales of $3.6 Billion
NET SALES OF $3.6 BILLION TTM 08/31/21 8,000 5,100 53 7 $604M ADJ. EBITDA TTM 08/31/21 3
Slide 4: Corporate Citizenship & Sustainability
Corporate Citizenship & Sustainability Long history of keeping employees safe, practicing good citizenship and protecting the environment For more details, please see our 2021 Citizenship & Sustainability Report 4 located on the “Sustainability Report” page of our website at: www.WorthingtonIndustri
Slide 5: New Reporting Segments Announced Starting Fiscal 2022
NEW REPORTING SEGMENTS ANNOUNCED STARTING FISCAL 2022 Segments better align businesses around the attractive end-markets they serve and provide investors with greater insights into performance 5
Slide 6: $3.6 Billion of Sales
$3.6 BILLION OF SALES IN TRAILING TWELVE MONTH ENDED 08/31/21 Net Sales by End-Market Adjusted EBITDA* by Segment $3.6 Billion $604.3 Million 15% 12% 5% 4% $344 $84 13% 5% 9% $159 37% $7 $10 Steel Consumer Products Automotive Construction Consumer Products Building Products Building Products Sustain
Slide 7: Complementary Value Drivers: Transformation, Innovation, Acquisitions
COMPLEMENTARY VALUE TRANSFORMATION Broad based business system focused on: + Data-driven decision making * Optimizing value streams and eliminating waste * Discovering new capabilities through agile teams * One system, driven by everyone, not just a central tiger team r DRIVERS ARE WELL ESTABLISHED
Slide 8: Transformation: Machine Sensoring and Analytics for Predictive Maintenance
TRANSFORMATION Utilizing Machine Sensoring and Analytics AVOIDED for Predictive Maintenance $1 Situation: Despite regularly planned maintenance there can be unpredictable outages on machines that MILLION require costly unplanned down time and rework Vision: in potential lost earnings Improve the rel
Slide 9: Digital Fuel Gauge for portable cylinders
INNOVATION Digital Fuel Gauge for portable cylinders • Consumer need identified to know how much fuel was remaining in hand torch and camping gas cylinders • Concept designed and manufacturing outsourced to enable quick speed to market • Available at 24 retailers nationwide under Bernzomatic and Col
Slide 10: Becoming a Global Leader in the Electrical Steel Market
ACQUISITIONS BECOMING A GLOBAL LEADER IN THE ELECTRICAL STEEL MARKET Planned acquisition of Tempel expands our product offerings adding highly engineered, precision-stamped, electrical steel laminations. The acquisition will immediately make us a market leader in the rapidly growing electrical steel
Slide 11: Demand for electric motors and transformers will grow significantly
As the world transitions to renewable energy and electric vehicles, demand for electric motors and transformers will grow significantly Focus on Decarbonization Aging Infrastructure Worldwide Transition to and Renewable Energy Worldwide Electric Vehicles Aging infrastructure will require Technologic
Slide 12: Tempel serves diverse and attractive end-markets
Tempel serves diverse and attractive end-markets which are projected to grow faster than GDP Net Sales by End-Market (CY 2020) Projected Global Growth Through 2025 Est. 11% End-market CAGR Trends driving growth Automotive motors 26-27% -Growing global production of electrical (EV traction motors) ve
Slide 13: Tempel's global footprint allows it to serve customers worldwide
Tempel’s global footprint allows it to serve customers worldwide Global Operations Europe • Global manufacturing capabilities allow Tempel Burlington, Ontario to partner with its customers worldwide and adjust to changing production needs Manufacturing Locations Buena Park, CA Levittown, PA Changzho
Slide 14: Financial Goals
FINANCIAL GOALS • INCREASE MARGINS / DECREASE ASSET INTENSITY • REDUCE EARNINGS VOLATILITY • MODEST LEVERAGE / AMPLE LIQUIDITY (INVESTMENT GRADE) • BALANCED CAPITAL ALLOCATION • RIGOROUS CAPITAL DISCIPLINE 14 14
Slide 15: Balanced Capital Allocation Strategy
BALANCED CAPITAL ALLOCATION STRATEGY Strong cash flows and significant liquidity support balanced approach to capital allocation focused on growth and rewarding shareholders OVER $3 BILLION OF CAPITAL DEPLOYED IN PAST 10 YEARS SINCE START OF FY2012 ✓ Reinvest in the business to create value and ($ m
Slide 16: Consolidated Financial Results
C O N S O L I D AT E D F I N A N C I A L R E S U LT S $ millions, except EPS FY2019 FY2020 FY2021 Q1 FY 2021 Q1 FY 2022 Sales $3,760 $3,059 $3,171 $703 $1,111 Adjusted EBIT* $234 $208 $396 $53 $174 % of sales 6.2% 6.8% 12.5% 7.5% 15.7% Adjusted EBITDA* $330 $300 $483 $75 $196 % of sales 8.8% 9.8% 15
Slide 17: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Worthington offers an attractive investment opportunity balancing growth and rewarding shareholders • Business segments aligned around diverse and attractive end-markets with market leading positions • Actively pursuing growth through innovation, transformation, and acquisi
Slide 18: Supplemental Data
Supplemental Data 18
Slide 19: Consumer Products: Market Leading Brands
CONSUMER PRODUCTS I MARKET LEADING BRANDS ($ Millions) Market leading brands sold primarily through big-box retailers Net Sales OUTDOOR LIVING TOOLS CELEBRATIONS $524 $449 $134 $148 Brands FY20 FY21 FY21 Q1 FY22 Q1 Products Adj. EBITDA $87.3 $76.1 $26.7 $23.8 Channel Partners FY20 FY21 FY21 Q1 FY22
Slide 20: Consumer Products Financials
CONSUMER PRODUCTS FINANCIALS $ millions FY2020 FY2021 Q1 FY2021 Q1 FY2022 Sales $449 $524 $134 $148 Adj. EBIT* $65 $75 $24 $21 % of sales* 14.6% 14.3% 17.9% 13.9% Adj. EBITDA* $76 $87 $27 $24 % of sales* 16.9% 16.7% 20.0% 16.1% Capital Expenditures $8 $13 $2 $4 Volume (000s units) 70,711 74,657 18,8
Slide 21: Building Products Segment
BUILDING PRODUCTS I SEGMENT Broad array of market-leading commercial and residential building products primarily sold ($ Millions) through distributors. Equity earnings of WAVE and ClarkDietrich joint-ventures reported as part of Building Products EBIT. Net Sales FY21 Adj. EBITDA Products Net Sales
Slide 22: Building Products Financials
BUILDING PRODUCTS FINANCIALS $ millions FY2020 FY2021 Q1 FY2021 Q1 FY2022 Sales $383 $402 $88 $115 Adj. EBIT* $105 $118 $23 $49 % of sales* 27.3% 29.3% 26.5% 42.5% Adj. EBITDA* $122 $133 $27 $53 % of sales* 31.8% 33.2% 30.8% 45.8% Capital Expenditures $18 $23 $4 $8 Volume (000s units) 10,896 11,182
Slide 23: Sustainable Energy Solutions: Bankable Sustainable Mobility Solutions Partner
SUSTAINABLE ENERGY SOLUTIONS I THE BANKABLE SUSTAINABLE MOBILITY SOLUTIONS PARTNER Sources: Market&Market, BloombergNEF SEGMENT HIGHLIGHTS > $800B Global hydrogen market potential (2050) $3.4B CNG / RNG / H2 tank market size (2025) WORTHINGTON High-pressure cylinders, bundles and containers for CNG
Slide 24: Sustainable Energy Solutions Financials
SUSTAINABLE ENERGY SOLUTIONS FINANCIALS $ millions FY2020 FY2021 Q1 FY2021 Q1 FY2022 Sales $122 $135 $28 $25 Adj. EBIT* $5 $5 ($1) ($3) % of sales* 4.1% 3.7% -2.0% -10.0% Adj. EBITDA* $11 $12 $1 ($1) % of sales* 8.7% 8.6% 3.3% -3.9% Capital Expenditures $14 $9 $4 $1 Volume (000s units) 846 897 190 1
Slide 25: Steel Processing Segment
STEEL PROCESSING I SEGMENT ($ Millions) High value-add steel processing • Broad range of metal products in sheet, coil and strip configurations as well as processing Net Sales capabilities including cold reduction, specialty coatings, annealing, pickling, slitting and blanking $2,059 Laser welding s
Slide 26: Steel Processing Financials
STEEL PROCESSING FINANCIALS $ millions FY2020 FY2021 Q1 FY2021 Q1 FY2022 Sales $1,860 $2,059 $431 $823 Adj. EBIT* $40 $208 $14 $108 % of sales* 2.1% 10.1% 3.3% 13.1% Adj. EBITDA* $81 $249 $25 $119 % of sales* 4.3% 12.1% 5.7% 14.5% Capital Expenditures $41 $28 $15 $8 Volume (000s tons) 3,831 4,067 92
Slide 27: Adjusted EBITDA / Free Cash Flow
ADJUSTED EBITDA / FREE CASH FLOW SUPPLEMENTAL DATA FY18 FY19 FY20 FY21 FY21 FY22 TTM Annual Annual Annual Annual Q1 Q1 8/31/2021 Net Income $ 194.8 $ 153.5 $ 78.8 $ 723.8 $ 616.7 $ 132.5 $ 239.6 Interest Expense 38.7 38.1 31.6 30.3 7.6 7.7 30.5 Taxes 8.2 43.2 26.3 176.3 163.8 40.2 52.6 EBIT $ 241.7
Slide 28: Consolidated Adjusted EPS
C O N S O L I D AT E D A D J U S T E D E P S SUPPLEMENTAL DATA $ millions, except EPS FY2019 FY2020 FY2021 Q1 FY2021 Q1 FY2022 EPS $2.61 $1.41 $13.42 $11.22 $2.55 Restructuring and non-recurring (excluding Nikola)* (0.01) 0.98 1.84 0.88 (0.09) Impact of Nikola Investment - - (10.02) (11.46) - EPS Ad
Slide 29: Reconciliation of Adjusted EBIT & EBITDA - FY21
R E C O N C I L I AT I O N O F A D J U S T E D E B I T & E B I T D A - F Y 2 1 SUPPLEMENTAL DATA $ Millions (except volume) Fiscal Year Ended May 31, 2021 Sustainable Steel Consumer Building Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 4,066,773 74,656,594 11,
Slide 30: Reconciliation of Adjusted EBIT & EBITDA - FY20
R E C O N C I L I AT I O N O F A D J U S T E D E B I T & E B I T D A - F Y 2 0 SUPPLEMENTAL DATA $ Millions (except volume) Fiscal Year ended May 31, 2020 Sustainable Steel Consumer Building Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 3,830,675 70,710,740 10,
Slide 31: Reconciliation of Adjusted EBIT & EBITDA - FY22 Q1
R E C O N C I L I AT I O N O F A D J U S T E D E B I T & E B I T D A – F Y 2 2 Q 1 SUPPLEMENTAL DATA $ Millions (except volume) Three Months Ended August 31, 2021 Sustainable Steel Consumer Building Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 1,062,288 21,388
Slide 32: Reconciliation of Adjusted EBIT & EBITDA - FY21 Q1
R E C O N C I L I AT I O N O F A D J U S T E D E B I T & E B I T D A – F Y 2 1 Q 1 SUPPLEMENTAL DATA $ Millions (except volume) Three Months Ended August 31, 2020 Sustainable Steel Consumer Building Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 928,444 18,820,5
Slide 33: Makers of Better
® MAKERS OF BETTER 33
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