Slide 1: Q1'25 Earnings
Q1’25 Earnings AUGUST 7, 2024 August 2024 © 2024 EnerSys. All Rights Reserved. 1
Slide 2: Forward Looking Statements
Forward Looking Statements As a reminder, we will be presenting certain forward-looking statements on this call that are based on Management’s current expectations and views regarding future events and operating performance and are subject to uncertainties and changes in circumstances. Our actual re
Slide 3: Q1'25 Overview
Q1’25 Overview D AV E S H A F F E R PRESIDENT AND CEO August 2024 © 2024 EnerSys. All Rights Reserved.
Slide 4: Q1'25 Performance
Q1’25 Performance $853M $106M $121M $1.98 ($26M) Net Sales Adj Op Adj Adj EPS1 Free Cash Earnings1 EBITDA1 Flow1 (6%) Y/Y (1%) Y/Y (1%) Y/Y +5% Y/Y ($85M) Y/Y Adj Op Earnings1 Adj EBITDA1 Margin of 12.4% Margin of 14.2% Adjusted Gross Profit1 Margin of 28.0% up +120bps vs prior year August 2024 1) N
Slide 5: Q1'25 Executing on Our Strategy
Q1’25 Executing on Our Strategy Increasing Higher Value Solutions • MP NexSys 48V heavy duty lithium batteries received first order • MP NexSys outdoor chargers received first orders – further enabling shift to electric forklifts from ICE Innovate • ES DPX Outdoor Fault Managed power supply UL certi
Slide 6: Bren-Tronics Acquisition Closed July 26, 2024
Bren-Tronics Acquisition Closed July 26, 2024 E X PA N D S P R E S E N C E I N C R I T I C A L D E F E N S E A P P L I C AT I O N S HIGHLIGHTS • Legacy of innovation since 1973 and strong relationship with DOD • Highly complementary portfolio of products for military and defense • Strong engineering
Slide 7: Experienced and Diversified Board of Directors
Experienced and Diversified Board of Directors S K I L L S M AT R I X Paul Tufano Caroline Chan Steven Fludder Executive Leadership 100% Non-Executive Chair of the VP and General Manager Former CEO, Board of Directors, EnerSys Network Business Incubator LS Energy Solutions LLC Character / Integrity
Slide 8: Q1'25 Financial Results, Q2'25 & FY'25 Outlook
Q1’25 Financial Results ANDI FUNK Q2’25 & FY’25 Outlook EVP AND CFO August 2024 © 2024 EnerSys. All Rights Reserved.
Slide 9: Q1'25 Results
Q1’25 Results N E T S AL E S AD J O P E AR N I N G S 1 & M AR G I N $909 $853 Y/Y Change $107 $106 (3%) volume (2%) price 11.8% 12.4% (1%) FX Q1'24 Q1'25 Q1'24 Q1'25 AD J E B I T D A 1 & M AR G I N AD J D I L U T E D E P S 1 $122 $121 $1.89 $1.98 13.5% 14.2% Q1'24 Q1'25 Q1'24 Q1'25 Delivered Adj. EP
Slide 10: Energy Systems Segment Highlights
Energy Systems Segment Highlights Q1’25 ($M) Y/Y change Net Sales $361 (15%) Adj Op Earnings1 $19.0 (36%) Adj OE Margin1 5.3% (170 bps) • Net Sales (15%) Y/Y ‒ (11%) volume, (3%) price / mix, (1%) FX ‒ Decline primarily due to continued U.S. Communication Networks CapEx pause ‒ Book-to-bill >1, firs
Slide 11: Motive Power Segment Highlights
Motive Power Segment Highlights Q1’25 ($M) Y/Y change Net Sales $366 +4% Adj Op Earnings1 $56.0 +11% Adj OE Margin1 15.3% +90 bps • Net Sales +4% Y/Y ‒ +6% volume, (1%) price/mix due to elimination of prior year utility adder, (1%) FX ‒ Maintenance-free products increased to 24% of segment net sales
Slide 12: Specialty Segment Highlights
Specialty Segment Highlights Q1’25 ($M) Y/Y change Net Sales $126 (6%) Adj Op Earnings1 $4.9 (50%) Adj OE Margin1 3.9% (350 bps) • Net Sales (6%) Y/Y ‒ (3%) volume, (3%) price/mix, flat FX ‒ Transportation demand negatively impacted by temporary softening in Class 8 truck OEM market • Adj Op Earning
Slide 13: Balance Sheet, Cash Flow and Leverage
Balance Sheet, Cash Flow and Leverage S E L E C T E D B AL AN C E S H E E T M E T R I C S 1 S E L E C T E D C AS H F L O W M E T R I C S 2 ($M) Q4’24 Q1’25 ($M) Q1’24 Q1’25 Cash and Cash Equivalents $333 $344 Cash Flow from Operations $75 $10 Net Debt3 $511 $565 Net Leverage Ratio3 1.0x 1.1x CapEx (
Slide 14: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy Priorities Q1’25 Future Priorities • Continue TPPL capacity investments & end-to-end solutions Invest in Organic Growth (CapEx) $36M • Optimize EOS to drive additional operational efficiencies • Accelerate domestic-sourced lithium strategy $11M Verkor investme
Slide 15: Dividend Update
Dividend Update • August 07, 2024, our Board of Directors declared a 7% increase in the Company’s quarterly dividend • Quarterly cash dividend increased to $0.24 from $0.225 per share of common stock payable on September 30, 2024, to holders of record as of September 16, 2024 • As part of our discip
Slide 16: Looking Ahead: Q2'25 and FY'25 Guidance
Looking Ahead: Q2’25 and FY’25 Guidance AS S U M P T I O N S Q2’25 FY’25 Q2’25 • Incremental revenue and EPS from Bren-Tronics Net Sales $880M – $920M $3,735M – $3,885M • Modest QoQ improvement in ES N.A. Communications spend • Modest Transportation aftermarket volume growth in Specialty • Continued
Slide 17: Q&A
Q&A August 2024 © 2024 EnerSys. All Rights Reserved.
Slide 18: Appendix
Appendix August 2024 © 2024 EnerSys. All Rights Reserved.
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations August 2024 © 2024 EnerSys. All Rights Reserved.
Slide 20: Non-GAAP Reconciliation: Adjusted Operating Earnings
Non-GAAP Reconciliation Q 1 F Y ’ 2 5 A D J U S T E D O P E R AT I N G E A R N I N G S August 2024 © 2024 EnerSys. All Rights Reserved. 20
Slide 21: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation ADJUSTED EBITDA August 2024 © 2024 EnerSys. All Rights Reserved. 21
Slide 22: Non-GAAP Reconciliation: Q1 FY'25 Adjusted Diluted EPS
Non-GAAP Reconciliation Q1 FY’25 ADJUSTED DILUTED EPS August 2024 © 2024 EnerSys. All Rights Reserved. 22
Slide 23: Non-GAAP Reconciliation: Leverage Ratio by Year
Non-GAAP Reconciliation L E V E R A G E R AT I O B Y Y E A R Fiscal year ended March 31, (1) The $51.7 million adjustment to EBITDA in fiscal 2023 primarily related to $26.4 million of non-cash stock ($ in millions, except ratios) 2023 2022 2021 2020 2019 2018 compensation, $22.4 million of restruct
Slide 24: Non-GAAP Reconciliation: Leverage Ratio by Quarter
Non-GAAP Reconciliation L E V E R A G E R AT I O B Y Q U A R T E R (1) The $81.5 million adjustment to EBITDA in the last twelve months ending June 30, 2024 primarily related to $29.7 million of non-cash stock compensation, $40.4 million of restructuring and other exit charges, impairment of indefin
Slide 25: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation FREE CASH FLOW August 2024 © 2024 EnerSys. All Rights Reserved. 25
Slide 26: Non-GAAP Reconciliation: Adjusted Gross Profit and Gross Margin
Non-GAAP Reconciliation ADJUSTED GROSS PROFIT AND GROSS MARGIN August 2024 © 2024 EnerSys. All Rights Reserved. 26
Slide 27: Key Performance Indicator: Primary Operating Capital
Key Performance Indicator P R I M A R Y O P E R AT I N G C A P I TA L As part of managing the performance of our business, we monitor the level of primary operating capital, and its ratio to net sales. We define primary operating capital as accounts receivable, plus inventories, minus accounts payab
Slide 28: Thank you.
Thank you. For more information visit us at www.enersys.com World Headquarters EnerSys EMEA EnerSys Asia 2366 Bernville Road EH Europe GmbH 152 Beach Road Reading, PA 19605 USA Baarerstrasse 18 Gateway East Building #11- 08 +1 610-208-1991 / +1 800-538-3627 6300 Zug Switzerland Singapore 189721 / +6