Worthington Enterprises, Inc. · NYSE:WOR
Worthington Enterprises — 19th Annual Industrial Growth Conference 2024
27 slides from Worthington Enterprises's conference presentation, May 8, 2024
Slide 1: 19th Annual Industrial Growth Conference
ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx 19th Annual Industrial Growth Conference MAY 8, 2024
Slide 2: Notes to Investors
Notes to Investors FORWARD-LOOKING STATEMENTS. Selected statements in this presentation constitute “forward-looking statements,” as that term is used in the Private Securities Litigation Reform Act of 1995 (the “Act”). Worthington Enterprises, Inc. (the “Company” or “Worthington”) wishes to take adv
Slide 3: 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
Slide 4: Worthington Enterprises 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 $1.3 BILLION1 Long-Term Growth • Business Model Drives High Free Cash Flow and Returns • Wort
Slide 5: Established Portfolio of Market-Leading Brands
Established Portfolio of Market-Leading Brands… 80%+ of Adjusted EBITDA comes from brands and products with leading market positions Ceiling Metal Hand Torch Camping Portable Vertical Well Water Suspension Framing And Fuels Fuel Helium Tanks Residential Tanks Systems Heating Tanks Note: FY2023 perio
Slide 6: …With High Barriers-to-Entry and Returns
High Margin, Asset-Light Business Model, Generating Strong Cash Flow …With High Barriers-to-Entry and Returns Highly Engineered Solutions – Meeting Rigorous Specifications in Highly Regulated Markets Reliability, Speed & Product Quality – Exceptional Quality, Service, and Supply Chain Solutions Robu
Slide 7: Our Products Serve Markets Well Positioned for Strong Secular Trends
Our Products Serve Markets that are Well Positioned to Capitalize on Strong Secular Trends GOVERNMENT STIMULUS ENVIRONMENTAL RE-SHORING AND AND SUPPORT POPULATION SHIFT INVESTMENT NEAR SHORING Ceiling Metal HVAC H2 & CNG Propane Refillable Lawn & BBQ / Foam & Industrial Metal HVAC Tools Systems Solu
Slide 8: Business Model Drives Strong Returns
Business Model Drives Strong Returns Net Sales ($M) Adjusted EBITDA1 ($M) 13% 21% CAGR CAGR $319 $302 $1,418 $279 $1,309 $1,296 $1,112 $205 FY2021 FY2022 FY2023 TTM FY2021 FY2022 FY2023 TTM Note: TTM figures as of Q3 FY2024. 1 Refer to appendix for reconciliation of Adjusted EBITDA to the comparable
Slide 9: Worthington Business System Accelerates Our 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,
Slide 10: 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
Slide 11: 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
Slide 12: Low Leverage and Ample Liquidity Provides Financial Flexibility
Low Leverage and Ample Liquidity Provides Financial Flexibility Strong Leverage1: 1.1x Balance Sheet Total Debt / TTM Adj. EBITDA Commitment to Maintaining Financial Investment Grade Rating Flexibility Ample Liquidity2: $727M Disciplined Focused on growth and Capital rewarding shareholders Allocatio
Slide 13: Building Products At-a-Glance
Building Products At-a-Glance KEY FIGURES Heating (TTM AS OF Q3 FY24) $640M 35% $222M Facilitating the transition away from fuel oil, as well as providing back-up power solutions. Water NE T S AL E S AD J . E B I TD A M AR GI N AD J . E B I TD A 1 Key component in providing safe and clean drinking w
Slide 14: Consumer Products At-a-Glance
Consumer Products At-a-Glance KEY FIGURES Tools Outdoor Living (TTM AS OF Q3 FY24) Hand-held torches, micro torches, lighters, accessories and fuel for constructing, fixing, making and Torches, fuel and accessories, including the first in-market digital fuel gauge, for outdoor adventures, $519M 16%
Slide 15: 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
Slide 16: A Compelling Financial Profile
A Compelling Financial Profile Adj. EBITDA Net Sales Adj. EBITDA1 Margin $1,296M $279M 22% Net Working Fixed Assets Net Debt Capital2 $302M $268M $72M Note: TTM figures as of Q3 FY2024. 1 Refer to appendix for reconciliation of Adjusted EBITDA to the comparable GAAP measure. 2 Net Working Capital is
Slide 17: 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
Slide 18: Worthington Enterprises 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 $1.3 BILLION1 Long-Term Growth • Business Model Drives High Free Cash Flow and Returns • Wort
Slide 19: 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
Slide 20: Reconciliation of Non-GAAP Measures – FY24 Q3
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY24 Q3 (in millions) 20
Slide 21: Reconciliation of Non-GAAP Measures – FY23 Q3
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY23 Q3 (in millions) 21
Slide 22: Reconciliation of Non-GAAP Measures – FY24 Q3 TTM
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY24 Q3 TTM (in millions) 22
Slide 23: Reconciliation of Non-GAAP Measures – FY23
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY23 (in millions) 23
Slide 24: Reconciliation of Non-GAAP Measures – FY22
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY22 (in millions) Worthington Sustainable Enterprises Consumer Building Energy Corporate & Consolidated Products Products Solutions Other Net sales $ 1,309.2 $ 504.9 $ 673.4 $ 130.9 n/a Operating income (loss) $ 48.7 $ 81.7 $ 25.7 $ (6.2
Slide 25: Reconciliation of Non-GAAP Measures – FY21
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY21 (in millions) 25
Slide 26: Use of Non-GAAP Measures and Definitions
Use of Non-GAAP Measures and Definitions Effective December 1, 2023, the Company shifted management responsibilities for a propane tank manufacturing facility that was previously reported within the Consumer Products segment to the Building Products segment. Segment financial data included in these
Slide 27: Use of Pro Forma Financial Information
Use of Pro Forma Financial Information PRO FORMA FINANCIAL INFORMATION. These materials include certain financial data and operating metrics that are presented on a pro forma basis to illustrate the estimated effects of the Separation of Worthington Steel from the historical combined company, which
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