Enerpac Tool Group Corp. · NYSE:EPAC
Enerpac Tool — Investor Presentation (April 2025)
32 slides from Enerpac Tool's investor presentation, April 2025
Slide 1: Investor Overview April 2025
INVESTOR OVERVIEW APRIL 2025
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. In addition to statements with respect to guidance, the terms “outlook
Slide 3: Strong Investment Potential
Strong Investment Potential Premier industrial solutions provider serving a broad and diverse set of customers globally for mission- critical applications Exceptional channel partner network built over decades, creates competitive moat and enables truly global coverage Well-defined organic growth st
Slide 4: History of Enerpac Tool Group
History of Enerpac Tool Group Actuant (Spin-off From Applied Power) Was a Small Cap Diversified Industrial, With Enerpac as the Crown Jewel 2019 2021+ PAUL STERNLIEB Joins Enerpac as CEO 2000 ✓ Transformed the Company via the 2016-2021 ASCEND Program ✓ Developed and Launched New 1927 Focused On: Org
Slide 5: Accelerated Performance With ASCEND Transformation & Growth Strategy
Accelerated Performance With ASCEND Transformation & Growth Strategy ($ in millions, except per share) * ** Net Sales & Organic Growth Adjusted EBITDA & Margin (%) $598 $590 $571 $529 $147 $136 +8% +2% organic organic 25.0% +11% organic 22.8% +5% $83 $75 organic 14.5% 14.1% FY21 FY22 FY23 FY24 FY21
Slide 6: Business Overview
Business Overview ENERPAC @)
Slide 7: Premier Industrial Solutions Provider
Premier Industrial Solutions Provider OUR OUR STRATEGIC MISSION VALUES PILLARS WE MAKE SAFETY TEAMWORK HARD TO DO COMPLEX, OFTEN HAZARDOUS TARGET MARKET JOBS POSSIBLE INTEGRITY AGILITY LEADERSHIP SAFELY AND SIMPLIFIED AND EFFICIENTLY OWNERSHIP STANDARDIZED PROCESSES AND OPERATIONS 100+ ~2000 ~900 ~$
Slide 8: Geographic Diversity
Geographic Diversity EMEA 40% SALES OF $590M IN FISCAL 2024 APAC Americas 13% 47% GLOBAL PLANT OFFICE OTHER HEADQUARTERS Manufacturing/Assembly Sales Office/General Office Service Center/Warehouse/Other GLOBAL COVERAGE ALLOWS US TO Producing Near Understanding Some Projects Low-cost Geographic Bette
Slide 9: Large, Fragmented Vertical Markets Provide Growth Opportunities
Large, Fragmented Vertical Markets Provide Growth Opportunities FY24 Estimated End-Market Exposure* Refining/Petrochemical ~26% General Industrial ~24% Industrial MRO, Machining, & Mfg ~14% Power Generation ~10% Mining ~10% Infrastructure ~8% Other ~8% *Represents the Company’s best estimate of end
Slide 10: Globally Recognized Leader in Industrial Tools and Services
STRONG BRAND Globally Recognized RECOGNITION Leader in Industrial Tools and Services PREMIUM INDUSTRIAL TOOLS FY24 Revenue Mix HEAVY LIFTING PRODUCTS SERVICE & RENTAL 20% Cylinders/Jacks, Pumps, Bolting, Machining Bolting Tools, Presses, and Joint Integrity Pullers, Tools, Heavy Lifting Technology (
Slide 11: Offering a Wide Array of Durable and Reliable Products
Offering a Wide Array of Durable and Reliable Products to Address Mission-Critical Applications Pumps Cylinders Bolting Pullers Spreaders Cutters Presses Work Holding Heavy Lifting Machining 11
Slide 12: Providing High Quality Services Our Customers Rely On
Providing High Quality Services Our Customers Rely On FY24Service BOLTING Breakdown Primary Focus on Repairs and Maintenance ~48% ~52% Large Opportunity in Niche Services including Specialty MACHINING High Margin Services Rental Manpower Additional Opportunities in Power Generation, Wind, Rail and I
Slide 13: Enerpac's Competitive Advantage
STRENGTH BREADTH AND OF BRAND DEPTH OF PRODUCT QUALITY, PORTFOLIO DURABILITY, Enerpac’s RELIABILITY, SAFETY Competitive Advantage BREADTH OF CHANNEL PARTNER NETWORK; NO SIGNIFICANT CUSTOMER TECHNICAL AND CONCENTRATION GLOBAL APPLICATIONS COVERAGE EXPERTISE THAT CUSTOMERS RELY UPON SERVES MISSION-CRI
Slide 14: Taking Enerpac to the Next Level of Growth & Profitability
Taking Enerpac to the Next Level of Growth & Profitability 14
Slide 15: ASCEND Transformation Powered Performance
ASCEND Transformation Powered Performance Successfully completed in FY24 and drove above-market growth and margin expansion ACCELERATE IMPROVE DRIVE GREATER ORGANIC GROWTH OPERATIONAL EFFICIENCY & GO-TO-MARKET EXCELLENCE PRODUCTIVITY STRATEGIES & PRODUCTION EFFICIENCY IN SG&A • Improved Commercial E
Slide 16: Structural Margin Improvement Achieved via ASCEND
Structural Margin Improvement Achieved via ASCEND Gross Profit (% Net Sales) Adjusted SG&A (% Net Sales) 51.1% 49.3% 34.1% 33.7% 46.5% 46.0% 28.2% 27.6% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 March 2022 March 2023 August 2023 August 2024 $40-$50M Raised to $50-$60M Achieved Expected Reached 25% adj
Slide 17: Transition to Continuous Improvement Model with PEP
Transition to Continuous Improvement Model with PEP Strategic Efforts Focus Areas Accelerating Growth Execution and monitoring of growth strategy Continuous improvement projects in Optimizing Operations manufacturing and procurement Continuing to streamline SG&A through greater Minimizing Inefficien
Slide 18: Significant Market Opportunity
Significant Market Opportunity Industrial Tools TAM Enerpac Has Identified Large Market >$100B High-Pressure Opportunities Across Our Verticals Hydraulics TAM $20B Growth Strategy Aims to Capitalize on Enerpac SAM Targeted Market Opportunities ~$4.5B EPAC FY24 REVENUE Positioned to Win via our Produ
Slide 19: Ambitious Growth Strategy Centered Around Four Key Pillars
Ambitious Growth Strategy Centered Around Four Key Pillars EXPANSION Digital Customer Driven EXPANSION in Targeted TRANSFORMATION INNOVATION in Asia Pacific Vertical Markets 19
Slide 20: Growth Pillar: Expansion in Targeted Vertical Markets
Growth Pillar: Expansion in Targeted Vertical Markets Infrastructure Rail Industrial MRO* Wind Standalone Size/Growth Rating Size/Growth Rating Size/Growth Rating Size/Growth Rating Attractiveness SAM: Rail SAM: SAM: SAM: Market Size $600 - $800M $180 - $220M $1.4 - $1.8B $300 - $400M and Growth Gro
Slide 21: Strong Liquidity & Balance Sheet; Balanced Capital Allocation Strategy
Strong Liquidity & Balanced Capital Balance Sheet Allocation Strategy ($ in millions) Cash & Equivalents $120 Revolver Capacity (Undrawn) $399 Total Liquidity $518 Total Debt $192 Invest in Ourselves Disciplined M&A Net Debt/Adj. EBITDA* 0.5x Investments in Digital, Product Innovation, R&D, Operatio
Slide 22: Disciplined M&A Program
Disciplined M&A Program Continuing pure-play strategy, but looking beyond tools and services to solve customer needs in targeted vertical markets Healthy pipeline with focus on our four key verticals of infrastructure, rail, industrial MRO, and wind M&A activity focused on solution offerings that ad
Slide 23: Disciplined Approach in Action: DTA Acquisition
Disciplined Approach in Action: DTA Acquisition Acquired for €24 million + potential Transaction: earnout based upon achievement of 3-year targets. Combination of Enerpac’s vertical lift and DTA’s horizontal movement Strategic Fit: provides comprehensive customer solutions Tap Enerpac’s global sales
Slide 24: FY25 Guidance
NET SALES FY25 Guidance $610 - $625M ~0-2% Organic Growth ~3-6% Total Growth Key Assumptions: ▪ Targeting to outperform industry and gain market share ADJ. EBITDA* ▪ No broad-based global recession Depreciation & Amortization ~$14 - $16M $150 - $160M Interest Expense ~$13 - $15M Adjusted Tax Rate ~2
Slide 25: Appendix
Appendix ENERPAC @) TOOL GROUP
Slide 26: Annual Results
Annual Results ($ in millions, except per share) Net Sales* Gross Margin $598 $590 51.1% $571 49.3% $529 46.0% 46.5% $493 44.0% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Adjusted EBITDA & Margin (%)** Adjusted Diluted EPS** $147 $136 $1.72 $1.45 25.0% $83 22.8% $75 $0.81 $52 $0.63 14.1% 14.5
Slide 27: Quarterly Results
Quarterly Results ($ in millions, except per share) Net Sales & YoY Organic Growth* Adjusted EBITDA and Margin* $161 $159 $156 $150 $40 $40 $39 $145 $146 $37 $142 $142 $138 $35 $34 $34 $32 $34 9% 5% 26% 6% 25% 25% 25% 24% 24% 2% 24% 23% 4% 1% 5% 23% 1% -1% 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q2
Slide 28: IT&S Organic Growth by Region
IT&S Organic Growth by Region Regional IT&S Organic Growth by Region Americas EMEA APAC 1Q23 +HT +HSD +LSD 2Q23 +LDD +MSD +MSD 3Q23 +MSD Flat +HT 4Q23 +HSD +MSD +HT 2023 +LDD +MSD +LDD 1Q24 +MSD +HSD +LSD 2Q24 +LSD +MSD -LSD 3Q24 -LSD +LDD -LDD 4Q24 Flat +LSD -MSD 2024 +LSD +HSD -MSD 1Q25 -MSD +LSD
Slide 29: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions) Quarterly Consolidated Organic Sales Growth Annual Consolidated Organic Sales Growth ETG Organic Sales - Q1 FY23 vs. Q1 FY22 ETG Organic Sales - Q1 FY24 vs. Q1 FY23 ETG Organic Sales - Q1 FY25 vs. Q1 FY24 ETG Organic Sales - YTD FY24 vs. YTD FY23
Slide 30: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions) Net Sales Adjusted Net Earnings from Continuing Operations 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Enerpac Tool Group $ 142 $ 156 $ 161 $ 142 $ 138 $ 150 $ 159 $ 145 146 Net Earnings $ 4 $ 12 $ 22
Slide 31: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions, except per share) Net Sales Adjusted Net Earnings from Continuing Operations FY2020 FY2021 FY2022 FY2023 FY2024 FY2021 FY2022 FY2023 FY2024 Enerpac Tool Group $ 493 $ 529 $ 571 $ 598 $ 590 Net Earnings $ 38 $ 16 $ 47 $ 86 Earnings (loss) from Dis
Slide 32: Reconciliation of Non-GAAP Measures
Selling, general and administrative expenses $ 178 $ 225 $ 212 $ 176 SG&A Restructuring charges (1) (2) (8) (7) (7) Gain on sale of facility, net of transaction charges 5 1 - - Reconciliation of Non-GAAP Measures Leadership transition charges (1) (8) (1) - Business Review Charges - (3) - - M&A charg
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