Worthington Enterprises, Inc. · NYSE:WOR

Worthington Enterprises — Investor Day (October 2023)

89 slides from Worthington Enterprises's investor day presentation, Oct 11, 2023

  1. Slide 1: Investor Day

    ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx INVESTOR DAY OCTOBER 11, 2023 A market-leading designer and manufacturer of innovative Building Products, Consumer Products, and Sustainable Ene

  2. Slide 2: Notes to Investors

    Notes to Investors FORWARD LOOKING STATEMENTS. Worthington Industries, Inc. (the “Company” or “Worthington”) 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 relating to the intended separat

  3. 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 planned separation of the Steel Processing business, as described in the

  4. Slide 4: Our Presenter

    Our Presenter ANDY ROSE President & Chief Executive Officer Worthington Enterprises 4

  5. Slide 5: Led by a Proven Management Team

    Worthington Enterprises is Built on a Solid Foundation Led by a Proven Management Team ANDY ROSE JOSEPH HAYEK Chief Executive Executive Vice Officer President ERIC SMOLENSKI CFO & COO STEVE CARAVATI President President Building Products & Sustainable Energy Solutions Consumer Products Building Produ

  6. Slide 6: Today's Agenda

    ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx • T o d a y ’ s A g e n d a TIME TOPIC PRESENTER 9:30 – 9:35 Welcome and Agenda Marcus Rogier, Treasurer & Investor Relations Officer 9:35 – 9:5

  7. Slide 7: The Planned Separation Will Create Two Market-Leading, Independent Public Companies

    The Planned Separation Will Create Two Market-Leading, Independent Public Companies WORTHINGTON ENTERPRISES WORTHINGTON STEEL Andy Rose Joseph Hayek Geoff Gilmore Tim Adams Chief Executive Officer Chief Financial Officer Chief Executive Officer Chief Financial Officer ✓✓ A market-leader with premier

  8. Slide 8: Worthington Enterprises is a Compelling Standalone Investment Story

    Worthington Enterprises is a Compelling Standalone …and Now is the Investment Story…. Right Time to Separate Strategic Focus Enhanced focus on strategic priorities We have now achieved the scale, financial strength and capabilities to operate on a Timing standalone basis Differentiation Compelling a

  9. Slide 9: 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

  10. Slide 10: Play Video

    ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx PLAY VIDEO 10

  11. Slide 11: Built on Strategic Partnerships, M&A, and Organic Growth

    Worthington Enterprises is Built on a Foundation of Strategic Partnerships, M&A, and Organic Growth Rapid growth powered by Scaling the business with A market-leading designer a unique culture focused Establishing unique, and manufacturer of M&A and new product on the “Golden Rule” strategic Joint V

  12. Slide 12: A Variety of Building, Home, and Energy Related Applications

    A Variety of Building, Home, and Energy Related Applications 12

  13. Slide 13: Consumer Products

    CONSUMER NV PRODUCTS BERNZOMATIC. Pe

  14. Slide 14: Building Products

    BUILDING PRODUCTS W

  15. Slide 15: Sustainable Energy Solutions

    SUSTAINABLE ENERGY SOLUTIONS

  16. Slide 16: 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 $1.4 BILLION1 Long-Term Growth • Business Model Drives High Free Cash Flow and Returns • Wort

  17. Slide 17: 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

  18. Slide 18: With High Barriers-to-Entry

    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

  19. Slide 19: Markets Positioned to Capitalize on 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

  20. Slide 20: Business Model Drives Strong Returns

    Business Model Drives Strong Returns Net Sales ($M) Adjusted EBITDA1 ($M) 16% 20% CAGR CAGR $1,418 $1,361 $1,311 $319 $297 $285 $1,061 $205 FY2021 FY2022 FY2023 TTM FY2021 FY2022 FY2023 TTM Note: TTM figures as of Q1 FY24. 1 Refer to appendix for reconciliation of Adjusted EBITDA to the comparable G

  21. Slide 21: High Free Cash Flow Generation

    High Free Cash Flow Generation Accelerating Growth Today Long-Term Targets High Margin and Asset-Light Business Model $1.4B 6-8% Net Sales Net Sales CAGR ~21% Powered by the Worthington Business System 24% Adj. EBITDA Margin1 Adj. EBITDA Margin1 ~85% Driven by Strong Underlying Secular Trends 85-90%

  22. Slide 22: Worthington Business System Accelerates 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,

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: Low Leverage and Ample Liquidity Provides Financial Flexibility

    Low Leverage and Ample Liquidity Provides Financial Flexibility Strong Expected Leverage at Close1: 1.0x Balance Sheet Total Debt / TTM Adj. EBITDA Commitment to Maintaining Financial Investment Flexibility Grade Rating Disciplined Expected Liquidity at Close2: Capital $701M Allocation Note: TTM fig

  26. Slide 26: Overview of Building Products

    ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx OVERVIEW OF BUILDING PRODUCTS 26

  27. Slide 27: Delivering Better Spaces Through Essential Building Solutions

    Delivering Better Spaces Through Thoughtfully Designed Essential Building Solutions Developing ceiling solutions that create safe and welcoming WAVE JV environments (50% Interest) Broad array of highly B specialized products for Worthington Enterprises heating, cooking, cooling, & Building Products

  28. Slide 28: Building Products: Why We Win

    Building Products: Why We Win Driving Strong Cash Flows Across the Enterprise Leading Market Engineered Products Position 1 2 Strong Pricing Driven by Leading Market Share Specialized Nature of in Definable Niches – Products and Leading Heating, Cooking, Market Share Cooling, Water, & Construction H

  29. Slide 29: Market-Leading Building Products at a Glance

    Market-Leading Building Products at a Glance Brands Key Figures Financial Metrics (TTM as of Q1 FY24) ($ Millions) Net Sales Industry Leader With Innovation and Product Specification Driving High Barriers to Entry in Attractive End-Markets $570M Net Sales $402 $542 $586 $570 38% FY21 FY22 FY23 TTM S

  30. Slide 30: Our Presenters

    Our Presenters DOUG CADLE JIMMY BOWES President & CEO Vice President & General Manager WAVE Building Products 30

  31. Slide 31: WAVE: Bringing Together the Best of Both Parents

    WAVE: Bringing Together the Best of Both Parents • Established in 1955 • 50/50 JV, established in 1992, leveraging the • Established in 1860 • $1.4B sales in fiscal 2023 strength of both partners • $1.2B in sales in calendar 2022 • 14 facilities in 5 countries • $447 million in net sales in our fisc

  32. Slide 32: Why We Win: Customer Focus

    Why We Win: Customer Focus Providing Creative Solutions to Address Customers Need For Speed and Lower Total Cost Pre-Engineered Integrated Time & Labor Segment Specific Designs Healthy Building Innovation Ceiling Construction Savings Solutions Bringing value through our Addressing compressed Meeting

  33. Slide 33: Innovation and Construction Expertise

    Innovation and Construction Expertise Segment Specific Design, Time, and Labor Savings Solutions TIME & LABOR DATA CENTER AIR SAVINGS SOLUTIONS PURIFICATION SIMPLESOFFIT Functional Ceilings HEALTHYSPACES Drywall Framing System DYNAMAXTM & DYNAMAXPLUSTM STRUCTURAL TM FRAMEALL • Faster and safer insta

  34. Slide 34: Consistent Track Record of Delivering Earnings Growth

    Consistent Track Record of Delivering Earnings Growth Growth Initiatives Leave WAVE Well Positioned for Future Growth Net Sales ($M) $452 $447 $449 New Containment Solutions allows for more efficient $391 $372 use of power and cooling systems at data centers, resulting is significant cost savings Es

  35. Slide 35: Everyday Products Essential for Enjoying Life

    Everyday Products Essential for Enjoying Life Established in 1971 Industry Leading Partnerships Diversified Market Leadership in Pressurized with Customers & Suppliers Across Numerous Containment Solutions End Markets Providing Critical Components in Essential End Markets HEATING COOKING COOLING WAT

  36. Slide 36: Why We Win: Leveraging the Worthington Business System

    Why We Win: Leveraging the Worthington Business System to Accelerate Growth Investment in Key Roles (# of Employees) • Investments in key roles and capabilities are contributing to market share gains and 36 11 12 13 margin enhancements +27 • Proven ability to disrupt mature markets 9 with innovation

  37. Slide 37: Building the Core Through Transformation

    Building the Core Through Transformation Deeper Understanding of End Market Drivers Leads to Opportunity for Market Share Gains 1 Opportunity 3 Accomplishments Long history of reactionary production plans (FY18-FY23) • Production plans could not adapt to customer demands • Volatile lead times led to

  38. Slide 38: Expanding the Core Through New Product Development

    Expanding the Core Through New Product Development Solving the Propane Industry’s Biggest Problems via Tech-Enabled Solutions Consumers Propane Distributor Propane Distributor How Much Fuel is in My Cylinder? How Can I Optimize My Propane Where are My Cylinders? Delivery Route? Solution: Solution: S

  39. Slide 39: Disrupting Our Core by Creating New Markets

    Disrupting Our Core by Creating New Markets Spray Foam & HISTORICAL DIP TUBE SOLUTION RESULTS Adhesive MARKETS SINCE WE INCREASED FOCUS. . . Roofing 4X NET SALES NUMBER OF CUSTOMERS HAVE DOUBLED GROWTH Insulation Using Voice of Customer , We’re now solving Spray Foam & Adhesive Market’s Biggest Chal

  40. Slide 40: ClarkDietrich

    ClarkDietrich A Market Leader in Commercial Steel Framing Contribution to Worthington’s Adj. EBITDA ($M) $ 89 • 25% owned JV formed in 2011 through the combination of ClarkWestern Building Systems and Dietrich Metal Framing $ 80 $ 77 • Building solutions provider for commercial steel framing distrib

  41. Slide 41: ClarkDietrich: At A Glance

    ClarkDietrich: At A Glance 16 Locations Nationwide Headquartered in West Chester, OH 1,400 Employees Top 19 populous cities within 500 miles Cold-Formed Representatives 50 Steel Engineers in every state LEED, CDT & CCPR 16 Certified Staff Diverse Projects Hospitality Education Stadiums Commercial He

  42. Slide 42: Strategic Joint Ventures Drive Consistent Cash Flow Generation

    C Strategic Joint Ventures Drive Consistent, Strong Cash Flow Generation The percentage of dividends received by Worthington relative to JV Equity Income has averaged over 98% over the last ten years $350 Wave & ClarkDietrich Dividends Over Time ($M) $300 137% 133% 130% 107% 100% $250 95% 97% $228 $

  43. Slide 43: Poised For Future Growth

    Delivering Essential Building Solutions Poised For Future Growth to Create Better Spaces Market-Leading Positions Consistent, Strong Cash Flow Generation Organic Growth Through New Product Development 43

  44. Slide 44: Overview of Consumer Products

    ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx OVERVIEW OF CONSUMER PRODUCTS 44

  45. Slide 45: Our Presenter

    Our Presenter STEVE CARAVATI President CONSUMER PRODUCTS 45

  46. Slide 46: Consumer Products: Why We Win

    Consumer Products: Why We Win Driving Sustainable Growth and Cash Flows Empower. Everyday. Everywhere. Recognizable Brands High Quality Products Strong Portfolio of 1 2 Highly Engineered Brands with Market- Products With Superior Leading Positions and Quality In The Industry Channel Strength Enablin

  47. Slide 47: Consumer Products at a Glance

    CONSUMER PRODUCTS AT A GLANCE SEGMENT OVERVIEW KEY FIGURES FINANCIAL METRICS (TTM as of Q1 FY24) ($ Millions) Value-added partner to customers, featuring a Net Sales wide variety of highly engineered products across $686 $647 $647M $636 Tools, Outdoor Living, and Celebrations $524 TOOLS OUTDOOR LIVI

  48. Slide 48: Product Portfolio Overview

    PRODUCT PORTFOLIO OVERVIEW Tools Outdoor Living Celebrations 28% 54% 18% OF SALES OF SALES OF SALES Note: TTM figures as of Q1 FY2024. 48

  49. Slide 49: Broad Range of Consumers in Attractive Market Segments

    Broad Range of Consumers in Attractive Market Segments with Significant Tailwinds Professionals DIYers Investment in Year-Round Repair & Spaces Sustainability & Remodel Americans are Wellness Craftsmen Aging U.S. housing stock spending more time and money outside Growing emphasis is leading to great

  50. Slide 50: Balanced Omni-Channel Strategy Maximizing Customer Reach

    Balanced Omni-Channel Strategy Maximizing Customer Reach Big Box Retailers E-Commerce Specialty Retailers Network of leading global retailers with more Expand DTC capabilities and broaden reach Network of diverse specialty retailers and than 10,600+ physical locations through value-based pricing tar

  51. Slide 51: A Roadmap for Our E-Commerce Strategy

    A Roadmap for Our E-Commerce Strategy 1 2 3 4 IDENTIFY GAPS THROUGH EXPAND DTC MODEL TARGETING BRANDS WITH TESTING NEW CONCEPTS CONSUMER INSIGHTS AND PLATFORMS ROOM TO GROW WITH FAST-TO-MARKET TIMELINES 51

  52. Slide 52: Organic Growth Platform Supplemented by Strategic Acquisitions

    Strong Organic Growth Platform Supplemented by Strategic Acquisitions Successful track record of M&A reorienting portfolio towards high growth segments and scaling the business Acquisitions Brands Capabilities Scale 3 strategic acquisitions in the last 3 years ✓ Outsourced Acquisitions increased man

  53. Slide 53: Voice Of Customer Approach Informing White Space Opportunities

    “Voice Of Customer” Approach Informing White Space Opportunities Opportunity Concept Development Product Realization & Driving Brand Awareness Identification 1 2 3 4 5 6 STAGE STAGE STAGE STAGE STAGE STAGE → → → → → → Explore Initiate Define Design Scale Launch REFINEMENT NPD A comprehensive idea-to

  54. Slide 54: Transformation Case Study: Working Capital Reduction

    Transformation Case Study: Working Capital Reduction Improved Internal Supplier / Customer Relationship and Efficiency Through Transformation 1 Opportunity 3 Accomplishments Long history of uncontrolled / uneven supply (Jul-Sep 2023) and demand patterns between Supplier and Customer • Material handl

  55. Slide 55: Consumer Products Platform Poised for Future Growth

    Consumer Products Platform Poised for Future Growth Building a Platform That Drives Sustainable Growth Established Position Supported CONSUMER by Market Leading Brands Blue-chip customer base PRODUCTS TOMORROW M&A focused in attractive adjacencies Capitalize on additional growth through enhanced DTC

  56. Slide 56: Overview of Sustainable Energy Solutions

    ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx OVERVIEW OF SUSTAINABLE ENERGY SOLUTIONS 56

  57. Slide 57: Our Presenter

    Our Presenter TIMO SNOEREN Vice President Sustainable Energy Solutions 57

  58. Slide 58: 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

  59. Slide 59: A Critical Supplier in the Hydrogen & CNG Supply Chain

    A Critical Supplier in the Hydrogen & CNG Supply Chain¹ Supply & Generation Transport, Storage, & Distribution Utilization Where Worthington Enterprises Participates End-to-End Solutions for Transport & Storage Industrial Material Supply & Generation Mobility Hydrogen CNG Gas Storage: High Pressure

  60. Slide 60: Positioned to Benefit from Growing Hydrogen Ecosystem

    Positioned to Benefit from Growing Hydrogen Ecosystem Hydrogen’s Growing Role in the Energy Transition Declining Production Costs of H2 • 680+ large-scale • Europe and USA hydrogen projects spearheading R&D and announced globally pilot production hubs Production Cost of Hydrogen, $ per kilogram • $2

  61. Slide 61: Exciting Recent Launches And Pipeline Show Promising Future

    Exciting Recent Launches And Pipeline Show Promising Future Hydrogen Transport & Application Hydrogen Truck Application • Container Business • 700 BAR H2 Fuel Systems • Up to 1,100 Kg of Hydrogen • Longer range, less weight • Initial market demand • Green Deal regulations materializing requiring ~50

  62. Slide 62: Sustainable Energy Solutions: Positioned for Growth

    Sustainable Energy Solutions: Positioned for Growth Ideally Positioned to Fill the Needs of the Developing Hydrogen and CNG Supply Chain Supporting the Expanding Global Powered by the Transition Storage Worthington Towards a Net Addressable Business System Zero Economy Market Established Filling a C

  63. Slide 63: Break

    ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx Break

  64. Slide 64: The Path Forward

    ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx The Path Forward

  65. Slide 65: Our Presenter

    Our Presenter JOE HAYEK Executive VP, CFO & COO Worthington Enterprises 65

  66. Slide 66: Our Strategic Enablers

    Our Strategic Enablers Worthington’s Performance-Based Culture Enables Continued Transformation, Innovation, and Appetite for Strategic Acquisitions LONG-TERM TARGETS TRANSFORMATION 6-8% 24% 85-90% MERGERS & Net Sales Adj. EBITDA Free Cash Flow ACQUISITIONS CAGR Margin1 Conversion2 Make the Business

  67. Slide 67: Transformation: Driving Continued Margin Expansion

    Transformation: Driving Continued Margin Expansion Lean / value stream analysis everywhere Transformation Goals • Margin Enhancement Price desks and margin excellence • Flat Cost-Structure • Operational Efficiencies Optimize sourcing and supply chain capabilities • Increased Service Levels Outsourci

  68. Slide 68: Our Goals: Innovation

    Innovation Creating sustainable, organic growth OUR GOALS Accelerate Speed & Quantity of NPD Drive Use of Technology Asset-Light Mindset Grow % of Sales from New Products Each Year 68

  69. Slide 69: Strategic Acquisitions Expected to Drive Profitable Growth

    Acquisition: Strategic Acquisitions Expected to Drive Profitable Growth • Predominantly #1 or #2 brand or market position • Higher margin, higher growth brands or products • Asset-light or low capital intensity business model Robust List of M&A • Exposure to the channels where we have Targets in the

  70. Slide 70: Corporate Citizenship and Sustainability

    Corporate Citizenship and Sustainability Continuing a long history of developing employees, practicing good citizenship, and protecting the environment Reducing Our Environmental Footprint $2.9M 36% Enhancing 53% Our Supporting given through the Worthington Workforce Communities Industries Foundatio

  71. Slide 71: Financial Overview

    ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx Financial Overview

  72. Slide 72: A Compelling Financial Profile

    A Compelling Financial Profile Adj. EBITDA Net Sales Adj. EBITDA1 Margin $1,361M $285M 21% Net Working Fixed Assets3 FCF Conversion4 Capital2 $295M $260M 85% Note: TTM figures as of Q1 FY2024. 1 Refer to appendix for reconciliation of Adjusted EBITDA to the comparable GAAP measure. 2 Net Working Cap

  73. Slide 73: Creating a Strong Growth Platform with Scale

    Creating a Strong Growth Platform with Scale Net Sales ($M) Adjusted EBITDA1 ($M) 16% 20% CAGR CAGR $1,418 $1,361 $1,311 $319 $297 $285 $1,061 $205 FY2021 FY2022 FY2023 TTM FY2021 FY2022 FY2023 TTM Long-Term Target: 6-8% Sales CAGR Long-Term Target: 24% Adj. EBITDA Margin Note: TTM figures as of Q1

  74. Slide 74: Continuous Improvement Mindset Drives Returns

    Continuous Improvement Mindset Drives Returns Free Cash Flow1 ($M) Streamlining the Business for Sustained Improvements 30% Simplify corporate structure for newly acquired CAGR businesses $261 $256 $243 86 % Operational excellence and continuous improvement $151 82% Technology and automation 74% FY2

  75. Slide 75: 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

  76. Slide 76: 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

  77. Slide 77: Worthington Industries Has Historically Maintained a Strong Balance Sheet

    Worthington Industries Has Historically Maintained a Strong Balance Sheet Key Highlights Over Past Year Debt Maturity Profile ($M) • We bolstered our already strong balance sheet over the past year since announcing the planned separation Paid off 2026 • Paid off debt (2026 bonds) and recently Bonds

  78. Slide 78: Worthington Enterprises Balance Sheet and Liquidity

    Worthington Enterprises Balance Sheet and Liquidity Well-Positioned to Start-off on Even Stronger Footing… Expected Balance Sheet At Close ($M) Liquidity Key Points Total Debt $298 • Remain Committed To Investment Grade Credit Ratings • $500M Credit Facility Backed By A Well Capitalized, Diversified

  79. Slide 79: Closing Remarks

    ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx Closing Remarks

  80. Slide 80: 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 $1.4 BILLION1 Long-Term Growth • Business Model Drives High Free Cash Flow and Returns • Wort

  81. Slide 81: Q&A

    ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx Q&A

  82. Slide 82: 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

  83. Slide 83: Update on Separation Into Two World-Class Companies

    Update on Separation Into Two World-Class Companies Key Events Expected Timing Public Announcement of Separation September 29, 2022 Amended Worthington Enterprises September 27, 2023 Revolver Credit Facility Effectiveness Public Form 10 Filing October 4, 2023 Investor Day Presentation October 11, 20

  84. Slide 84: Our Philosophy

    OUR PHILOSOPHY adopted in 1961, is the foundation of our culture EARNINGS SUPPLIERS ▪ The first corporate goal for Worthington Industries is to earn money for its ▪ We cannot operate profitably without those who supply the quality materials shareholders and increase the value of their investment. we

  85. Slide 85: Reconciliation of Non-GAAP Measures

    Worthington Enterprises Reconciliation of Non-GAAP Measures (in thousands) 85

  86. Slide 86: Reconciliation of Non-GAAP Measures

    Worthington Enterprises Reconciliation of Non-GAAP Measures (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 income

  87. Slide 87: Reconciliation of Non-GAAP Measures

    Worthington Enterprises Reconciliation of Non-GAAP Measures (in thousands) Twelve Months Ended May 31, 2022 Worthington Sustainable Enterprises Consumer Building Energy Corporate & Consolidated Products Products Solutions Other Net Sales $ 1,309,198 $ 636,478 $ 541,757 $ 130,954 $ 9 Operating income

  88. Slide 88: Reconciliation of Non-GAAP Measures

    Worthington Enterprises Reconciliation of Non-GAAP Measures (in thousands) Twelve Months Ended May 31, 2021 Worthington Sustainable Enterprises Consumer Building Energy Corporate & Consolidated Products Products Solutions Other Net Sales $ 1,112,032 $ 523,697 402,038 134,890 51,407 Operating income

  89. Slide 89: Worthington Industries Reconciliation of Non-GAAP Measures

    Worthington Industries Reconciliation of Non-GAAP Measures (in thousands) Below provides a reconciliation of trailing twelve months adjusted EBITDA as of August 31, 2023 and 2022 for Worthington Industries, Inc. along with the calculation of net debt to adjusted EBITDA for the same periods. The calc

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