Enerpac Tool Group Corp. · NYSE:EPAC

Enerpac Tool — Q3 2023 Earnings Presentation

15 slides from Enerpac Tool's earnings presentation, Jun 22, 2023

  1. Slide 1: Q3 FY2023 Earnings

    Q3 FY2023 Earnings June 22, 2023 1

  2. Slide 2: Forward-Looking Statements and Non-GAAP Measures

    Forward-Looking Statements and Non-GAAP Measures Statements made in this presentation that are not historical are forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. The terms “may,” “should, ”“could,” “anticipate,” “believe,” “estimate

  3. Slide 3: Q3 FY2023 Highlights

    NET SALES Q3 FY2023 Highlights $156M +3% YoY, Core Growth* +4%  Strong product sales more than offset lower service revenues (mainly driven by 80/20 implementation and more selective quoting process in MENAC region) ADJ. EBITDA  Core growth in 3 of 4 regions led by double digit growth in ESSAI and

  4. Slide 4: Market Update

    Market Update  Revenue growth driven by strong product sales, as well as robust service growth in the Americas  Product order rates were steady through the quarter  Distributors in the Americas and Europe remain cautious  Supply chain constraints remain but we have made progress against the back

  5. Slide 5: Regional 3Q FY2023 Update

    Regional 3Q FY2023 Update Market / Channel Region IT&S Core Growth Performance Drivers Commentary  Positive discussions with multiple  Mining distributors on second brand Asia Pacific + High teens   Oil & gas Power generation  expansion National distributors remain  LNG shipbuilding positive i

  6. Slide 6: ASCEND Transformation Updates

    ASCEND Transformation Updates Structural Improvements to SG&A Underway  Engineering Center of Excellence in lower cost location  Expanded engineering team, creating a global shared service center  Benefiting from co-located expertise, economies of scale, standardization, and labor arbitrage  Fin

  7. Slide 7: ASCEND Transformation Updates (Cont'd)

    ASCEND Transformation Updates (Cont’d) SKU Rationalization Update  Targeting a 30% reduction in total SKU Count  Phase 1 completed: Eliminated many long-tail SKUs (reduction of ~4,000)  Phase 2: Consolidate & harmonize, reducing an additional 5,000 to 7,000 SKUs, to be substantially completed by

  8. Slide 8: Q3 2023 Financial Review

    Q3 2023 Financial Review 8

  9. Slide 9: Q3 FY23 Results

    (US$ in millions) Q3 FY23 Results Net Sales Adj. EBITDA and Margin* NET SALES $37 • Core sales growth of 4% $156 • MENAC 80/20 implementation estimated to be a ~200bps drag • IT&S product sales 9% $18 $152 • Other product 5% • Service -13% • FX reduced sales by ~$2M or 1% 12.0% 24.0% 3Q22 3Q23 3Q22

  10. Slide 10: Solid Balance Sheet & Cash Flow

    Solid Balance Sheet & Cash Flow Free Cash Flow Cash Balance Gross Debt Net Debt/Adj. EBITDA* $142 $235 $14 1.1x 1.0x 0.9x $1 . . $209 . . $124 $125 $205 $(10) 3Q22 2Q23 3Q23 3Q22 2Q23 3Q23 3Q22 2Q23 3Q23 3Q22 2Q23 3Q23 Well Positioned to Support Balanced Capital Allocation Priorities *Periods as of

  11. Slide 11: Continuation of Share Repurchase

    Continuation of Share Repurchase  Opportunistic share repurchases are an important part of our balanced capital allocation strategy  Reflects Board’s confidence in our execution of the ASCEND transformation, progress against the growth strategy, and strong financial position  During Q3, we purcha

  12. Slide 12: FY23 Guidance

    NET SALES FY23 Guidance $590-600M CORE GROWTH OF 3-5%  Raising Our Full Year Outlook ADJ. EBITDA  Projected YoY growth by category: $123-130M  IT&S Product up MSD%  IT&S Service down MSD%  Other up HSD%  FY 2023 Modeling Assumptions:  Adj. Tax Rate: ~20%-25%  Depreciation & Amortization: ~$1

  13. Slide 13: Appendix

    Appendix ENERPAC @

  14. Slide 14: 3Q23 GAAP vs Non-GAAP Reconciliation

    3Q23 GAAP vs Non-GAAP Reconciliation Less ASCEND Leadership Restructuring Transformation Transition Other Tax GAAP Charges Charges Charges M&A Charges Adjustments Adjusted Sales $156.3 $156.3 Operating Profit $25.4 ($2.3) ($5.9) ($0.1) ($0.2) $0.0 $33.9 Income Taxes $4.7 ($0.4) ($2.7) ($0.1) ($0.0)

  15. Slide 15: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures (US$ in millions) Adjusted EBITDA Consolidated Core Sales Q3 FY2023 Q3 FY2022 Q3 FY2023 Q3 FY2022 % Change Net Earnings from continuing operations $17 $4 Net Sales $156 $152 3% Financing costs 3 1 FX Impact - (2) Income taxes 5 1 Core Sales $156 $150 4% Depreciati

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