Enpro Inc. · NYSE:NPO
Enpro — EnPro Industries — Sidoti Spring 2021 Virtual Conference
22 slides from Enpro's conference presentation, Mar 24, 2021
Slide 1: Investor Presentation March 2021
INVESTOR PRESENTATION MARCH 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements made in the course of 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
Slide 3: Key Messages
KEY MESSAGES Reshaping our portfolio to accelerate growth in niche, high-margin materials science-related 1 businesses with strong cash flow 2 Maintaining our high aftermarket exposure and investing in faster growth end markets Leveraging EnPro Capability Center to increase returns on invested capit
Slide 4: EnPro Overview
ENPRO OVERVIEW A leading industrial technology company using materials science to push boundaries in semiconductor, life sciences, and other technology-enabled sectors •ENPRO OVERVIEW 4
Slide 5: EnPro (NYSE: NPO) | Attractive Portfolio of Businesses
ENPRO (NYSE: NPO) | ATTRACTIVE PORTFOLIO OF BUSINESSES Company Overview Revenue Contribution3 Headquarters Charlotte, NC By Segment By Channel By Geography By Market Manufacturing Facilities 22 primary Global Employees ~4,400 3% 5% 3% 14% 5% 25% 23% 6% 6% 47% Financial Overview 53% 23% 6% 59% 61% 16
Slide 6: EnPro's Segments
ENPRO’S SEGMENTS Sealing Technologies Advanced Surface Technologies Engineered Materials Enabling high performance polymer Safeguarding critical environments Advancing precision services and solutions applications 2020 REVENUE $637M 2020 REVENUE $171M 2020 REVENUE $275M 2020 ADJUSTED EBITDA MARGIN 2
Slide 7: EnPro's Portfolio Transformation
ENPRO’S PORTFOLIO TRANSFORMATION Strategic Imperatives Successful Execution of Portfolio Shaping Actions Resulting in a More Durable Business Model Focusing on niche, high- Transaction Strategic Rationale margin materials science- • Materials science 1 Alluxa related businesses with Closed 4Q20 • Hi
Slide 8: Disciplined Capital Allocation Strategy
DISCIPLINED CAPITAL ALLOCATION STRATEGY 2020 Capital Allocation ($M) • Capital expenditures of $18 million in FY20 REINVEST IN THE BUSINESS • Approximately 68% in FY20 growth-related and balance $6M $5M focused on maintenance $12M $22M $238M • High technical know-how, IP-rich offering STRATEGIC • Ex
Slide 9: Key Takeaways
KEY TAKEAWAYS 1 2 3 4 5 Reshaping our Maintaining our high Leveraging EnPro Maximizing long-term Empowering our portfolio to accelerate aftermarket exposure Capability Center to shareholder returns employees through a growth in niche, high- and investing in faster increase returns on through a forwa
Slide 10: Appendix
APPENDIX
Slide 11: Consolidated Adjusted EBITDA
CONSOLIDATED ADJUSTED EBITDA 11
Slide 12: Consolidated Adjusted EBITDA
CONSOLIDATED ADJUSTED EBITDA (Stated in Millions of Dollars) 12
Slide 13: Segment Adjusted EBITDA
SEGMENT ADJUSTED EBITDA Er?ro For the Quarters and Years Ended December 31, 2020 and 2018 (Stated in Mlions of Dollars) ‘Seang Ad Toa ‘Technoogies_ Surface Technologies Materials Segments S$ m2 $8 ays 28 m5 os 63 6g 7 13 13 7 30 30 13 5 54 87 3B 67 38 133 =r sass a7 Dee 0% 155 224% ‘quarter Ended De
Slide 14: Segment Information
SEGMENT INFORMATION Er?ro For the Quarters and Vexs Ended Deoenber 31, 2020 and 2018 (Ste lions of Deas) Sales ‘Geserber 0 208 ie ‘Sealing Technogies Ss omy $ mas 3 m4 Surface Technologies 420 322 ‘a2 Nera 738 iss 213 ea Tent Tze Less sles 22) 2a Seo mess Se mings before interest, income taes, depre
Slide 15: Consolidated Adjusted Net Income
CONSOLIDATED ADJUSTED NET INCOME (Stated in Millions of Dollars, Except Per Share Data) 15
Slide 16: Consolidated Adjusted Net Income
CONSOLIDATED ADJUSTED NET INCOME (Stated in Millions of Dollars, Except Per Share Data) 16
Slide 17: Consolidated Adjusted Net Income
CONSOLIDATED ADJUSTED NET INCOME (Stated in Millions of Dollars, Except Per Share Data) 17
Slide 18: Free Cash Flow
FREE CASH FLOW (Stated in Millions of Dollars) 18
Slide 19: Free Cash Flow
FREE CASH FLOW ($ in Millions) FY2020 FY2019 FY2018 Net Cash Provided by (Used in) Operating Activities of 57.6 130.8 212.8 Continuing Operations Purchases of Property, Plant and Equipment (18.3) (21.6) (36.1) Free Cash Flow 39.3 109.2 176.7 Excluding: 2018 Tax Refund Benefit - - (78.0) Free Cash Fl
Slide 20: Pro Forma Calculation
PRO FORMA CALCULATION (Stated in Millions of Dollars) Year Ended December 31, 2020 Pro forma EnPro Adjustments Pro Forma Net sales $ 1,074 $ (91) $ 983 Net income (loss) attributable to EnPro Industries, Inc. $ 184 $ 21 $ 205 Adjustments to arrive at earnings before interest, income taxes, depreciat
Slide 21: 2018 Net Debt to Adjusted EBITDA
2018 NET DEBT TO ADJUSTED EBITDA $ millions December 31, 2018 Credit Facility $117 Senior Notes $345 Capital Lease Obligations $1 A Debt Components $463 B Cash and Equivalents $130 C = (A – B) Net Debt $333 D FY December 31, 2018 Adjusted EBITDA* $178 E = (C / D) Leverage Ratio 1.9x * Non-GAAP measu
Slide 22: 2019 Net Debt to Adjusted EBITDA
2019 NET DEBT TO ADJUSTED EBITDA Reported December 31, 2019 ($M) Credit Facility $134 Senior Notes1 $345 Term Loan $149 Capital Lease Obligations $1 A Debt Components $629 B Cash and Equivalents $121 C = (A – B) Net Debt $508 D December 31, 2019 Adjusted EBITDA* $169 E = (C / D) Leverage Ratio 3.0x
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