Enerpac Tool Group Corp. · NYSE:EPAC
Enerpac Tool — Wells Fargo Industrials & Oppenheimer Industrial Growth Conferences 2020
12 slides from Enerpac Tool's conference presentation, May 5, 2020
Slide 1: Wells Fargo Industrials & Oppenheimer Industrial Growth Conferences
Exhibit 99.1 Wells Fargo Industrials & Oppenheimer Industrial Growth Conferences May 5&6, 2020 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not historical are considered “forward-looking statements” and are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. Those factors are contained in
Slide 3: Controlling What We Can Control
Controlling What We Can Control As we progress through the uncertainty and volatility of the dual impacts of COVID-19 and the Oil and Gas shock, we are focused on controlling those things under our control: ▪ Employee Safety and Plant Operations ▪ Cash and Liquidity ▪ Cost measures – permanent and t
Slide 4: Employee Safety and Plant Operations
Controlling What We Can Control – Employee Safety and Plant Operations Employee Safety is #1 Concern ▪ Plants are operating as essential businesses ▪ Split shifts in our plants ▪ Temperatures are monitored and masks are provided at all operating locations ▪ Aggressive cleaning measures ▪ Enforcing s
Slide 5: Cash and Liquidity
Controlling What We Can Control - Cash and Liquidity Strong Balance Sheet* – We are well positioned Current Debt Structure*: ▪ Leverage at 1.3X • High Yield Bonds: $287M at 5.625% ▪ Interest coverage at 4.02X • Revolver: $400M – nothing drawn; current borrowing rate L+1.375% ▪ Liquidity • Term Loan
Slide 6: Cost Structure Actions
Controlling What We Can Control – Cost structure actions Cost Control Measures ▪ Temporary/COVID-19 related measures generating ~$9M in savings in back half of fiscal 2020: ▪ U.S.-based salaried employees ▪ 2-week furlough ▪ Temporarily suspended 401k match ▪ Suspended fiscal 2020 annual bonus progr
Slide 7: Prioritizing Capital Allocation
Prioritizing Capital Allocation • Given the volatility in Reduce Debt and Maintain a Strong Balance Sheet the market, our current capital allocation priorities are focused on maintaining a strong balance sheet and financial flexibility Invest in Ourselves to Drive Organic Growth • Investing in ourse
Slide 8: Organic Growth Initiatives: New Product Development
Controlling What We Can Control – Organic Growth Initiatives New Product Development (NPD) ▪ Continuing our investment ▪ NPVI greater than 10% through Q2 provides meaningful impact to current conditions ▪ New product launches continue throughout the year – including key products from HTL acquisition
Slide 9: Organic Growth Initiatives: Commercial Effectiveness
Controlling What We Can Control – Organic Growth Initiatives Commercial Effectiveness ▪ Further realignment of commercial team to get closer to customer through March actions ▪ Since COVID-19 ▪ Continued support of our distributors through virtual training and meetings ▪ Supporting markets where dem
Slide 10: Contributing to our Communities
Controlling What We Can Control Contributing to our Communities Community Outreach ▪ Continue to support the communities in which we live ▪ Donation of masks to local hospitals ▪ Columbus, WI operations team produced face shields for local health care providers ▪ Cortland, NY team produced masks usi
Slide 11: Preparing for What Comes Next
Controlling What We Can Control Preparing for What Comes Next Post-quarantine Preparedness ▪ Employee safety will continue to be our priority ▪ Regional preparedness planning underway to open offices and return to work ▪ Will follow guidelines from local governments ▪ Monitoring supply chains ▪ Prod
Slide 12: Enerpac Tool Group
ENERPAC ‘| TOOL GROUP
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