Slide 1: Second Quarter 2020 Earnings Review
SECOND QUARTER 2020 EARNINGS REVIEW AUGUST 4, 2020
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: Q2 2020 Update
Q2 2020 UPDATE Marvin Riley – President & CEO
Slide 4: Q2 2020 Highlights
Q2 2020 HIGHLIGHTS • Sales decreased 22.1% to $247.0M • Adjusted EBITDA margin* remained relatively stable, contracting ~30 bps to 15.2%, with adjusted EBITDA* of $37.5M • Announced final steps toward completion of reshaping the heavy -duty truck business to focus on products that are highly differe
Slide 5: Four-Phase Response to Navigate the COVID-19 Pandemic
FOUR-PHASE RESPONSE TO NAVIGATE THE COVID-19 PANDEMIC Our cross-functional COVID-19 Response & Support Team, made up of our global executive leadership team, is working around the clock to manage our business continuity plans and coordinated response THE HEALTH AND SAFETY OF OUR EMPLOYEES, COMMUNITI
Slide 6: EnPro's Strategy
ENPRO’S STRATEGY Reshaping portfolio to include businesses focused on materials science with compelling margins, leading 1 technologies, and strong cash flow in markets with favorable secular trends 2 Increasing aftermarket exposure and driving greater recurring revenues Maintaining a balanced, disc
Slide 7: Overview of Financial Results
OVERVIEW OF FINANCIAL RESULTS Milt Childress – Executive Vice President & CFO
Slide 8: Q2 2020 Financial Performance
Q2 2020 FINANCIAL PERFORMANCE $ in millions, except per share data Sales Gross Profit & Margin Adj. EBITDA* & Margin* Adj. Diluted EPS* $0.93 $317.2 -22.1% $108.5 -80b ps $49.3 -23.9% -41.9% 38 % 43 % 33 % $247.0 $82.5 41 % $37.5 28 % 39 % $0.54 23 % 37 % 35 % 18 % 33 % 13 % 34.2% 33.4% 31 % 15.5% 1
Slide 9: Sealing Products – Q2 2020 Financial Performance
SEALING PRODUCTS – Q2 2020 FINANCIAL PERFORMANCE $ in millions Sales Adj. EBITDA* & Margin* 29 % $231.3 27 % -17.9% $42.4 -2.1% $189.9 $41.5 25 % 23 % 21 % 21.9% 19 % 18.3% 17 % 15 % Q2 2019 Q2 2020 Q2 2019 Q2 2020 • Grow th in food and pharma and semiconductor w as more than offset by decreased • B
Slide 10: Engineered Products – Q2 2020 Financial Performance
ENGINEERED PRODUCTS – Q2 2020 FINANCIAL PERFORMANCE $ in millions Sales 20 Adj. EBITDA* & Margin* 45 % 18 40 % 10 0 $87.3 $15.7 16 90 35 % 80 -32.9% 14 -68.8% 30 % 70 $58.6 12 25 % 60 10 20 % 50 8 40 $4.9 15 % 30 6 18.0% 10 % 4 20 5% 10 2 8.4% 0 0 0% Q2 2019 Q2 2020 Q2 2019 Q2 2020 • Weakness in the
Slide 11: Balance Sheet Strength
BALANCE SHEET STRENGTH Net Leverage Debt Maturity Schedule Reported June 30, 2020 ($M) Credit Facility $0 Undrawn3 $400M $350M Rev olv er Senior Senior Notes 1 $346 Unsecured $150M Notes Term Loan2 $148 Term Loan A2 2020 2021 2022 2023 2024 2025 2026 Capital Lease Obligations $0 Commentary • Strong
Slide 12: COVID-19 Scenario Analysis
COVID-19 SCENARIO ANALYSIS Q2 Market Exposure Total EnPro Sealing Products Engineered Products General Industrial MD/HD Truck General Industrial 3%3% MD/HD Truck 3%3% 1% 2% Oil & Gas Semiconductor 1% 6% 4% 8% Petrochemical 22% Semiconductor 6% General Industrial 6% 29% 32% Oil & Gas 7% 12% Auto 6% F
Slide 13: Closing Comments
CLOSING COMMENTS Marvin Riley – President & CEO
Slide 14: Closing Comments
CLOSING COMMENTS ENPRO IS DETERMINED TO MAXIMIZE SHAREHOLDER VALUE DURING THIS CH ALLENGING TIME AND BEYOND ● Improving quality of portfolio through significant portfolio shaping actions ● Driving operational excellence by leveraging the EnPro Operating System to reduce costs and improve productivit
Slide 15: Q&A
Q&A
Slide 16: Appendix
APPENDIX
Slide 17: EnPro (NYSE: NPO) | Attractive Portfolio of Businesses
ENPRO (NYSE: NPO) | ATTRACTIVE PORTFOLIO OF BUSINESSES Company Overview Revenue Contribution Headquarters Charlotte, NC Sales by Sales by Segment 4 Sales by Channel5 Sales by Market 4 Manufacturing Facilities 25 primary Geography5 Global Employees ~5,000 3% 10% 3% 6% 3% Customers 50,000+ 24% 6% 22%
Slide 18: Reconciliation of LTM Results
RECONCILIATION OF LTM RESULTS EnPro Revenue Adjusted EBITDA Adjusted EBITDA ($ in millions) ($) ($) Margin % Plus: Six Months Ended June 30, 2020 530 78 14.7% Y ear Ended December 31, 2019 1,206 169 14.0% Less: Six Months Ended June 30, 2019 620 83 13.4% LTM Ended June 30, 2020 1,115 164 14.7% Seali
Slide 19: Consolidated Adjusted EBITDA
CONSOLIDATED ADJUSTED EBITDA Reconciliation of Net Income (Loss) to Adjusted EBITDA (Unaudited) For the Years Ended December 31, 2019 and 2018 (Stated in Millions of Dollars) Years Ended December 31, 2019 2018 Net income (loss) $ 38.3 $ 19.6 Adjustments to arrive at earnings before interest, income
Slide 20: Consolidated Adjusted EBITDA
CONSOLIDATED ADJUSTED EBITDA 20
Slide 21: Segment Adjusted EBITDA
SEGMENT ADJUSTED EBITDA Er”ro ‘Quarter Ended June 30, 2020 ‘Segment proft (loss) s 10 $ 03) $ 107 ‘Segment profit ‘Acquisition and divestiture expenses 05 - 05 Acquisition and aivestiture expenses Non-controliing interest compensation allocation” os - Os Non-controlling interest compensation allocat
Slide 22: Consolidated Adjusted Net Income
CONSOLIDATED ADJUSTED NET INCOME (Stated in Millions of Dollars) 22
Slide 23: Free Cash Flow
FREE CASH FLOW (Stated in Millions of Dollars) 23