Slide 1: First Quarter 2021 Earnings Review
First Quarter 2021 Earnings Review May 7, 2021
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: Q1 2021 Update
Q1 2021 Update Marvin Riley President & Chief Executive Officer
Slide 4: Q1 2021 Highlights
Q1 2021 Highlights • Adjusted EBITDA* increased 28.1% to $52.0M; adjusted EBITDA* margin increased 420 bps to 18.6% Financial • Sales decreased 1.2% to $279.3M as a result of strategic divestitures in 2020; On an organic basis, sales increased 5.5% Highlights • Strong balance sheet with net debt to
Slide 5: Enpro's Strategy and Portfolio Transformation
Enpro’s Strategy and Portfolio Transformation Focusing on niche, high-margin materials Successful Execution of Portfolio Shaping Actions 1 science-related businesses with strong cash flow Resulting in a More Durable Business Model Transaction Strategic Rationale Alluxa • Materials science Closed 4Q2
Slide 6: Sustainability is in Our DNA
Sustainability is in Our DNA Environment Social Governance Recent Accomplishments Employee Development and Safety • 8 out of 9 are Independent Directors, including our Chairman Won the U.S. Environmental Protection Agency’s • Our core values of Safety, Excellence and Clean Air Excellence Award Res
Slide 7: Overview of Financial Results
Overview of Financial Results Milt Childress EVP & Chief Financial Officer
Slide 8: Q1 2021 Financial Performance
Q1 2021 Financial Performance $ in millions, except per share data Sales Gross Profit & Margin Adjusted EBITDA* & Margin* Adjusted Diluted EPS* -1.2% +550 bps +28.1% +42.7% $109.4 $1.37 1.6 $282.7 $279.3 $52.0 38% $95.3 1.4 43% 33% $40.6 1.2 $0.96 41% 28% 39% 1 39.2% 23% 37% 0.8 35% 18% 18.6% 0.6 33
Slide 9: Sealing Technologies – Q1 2021 Performance
Sealing Technologies – Q1 2021 Performance $ in millions Sales Adjusted EBITDA & Margin 29% 50 $173.6 -15.6% +1.2% 27% $33.5 $33.9 40 $146.5 25% 30 23% 23.1% 21% 20 19.3% 19% 10 17% 0 15% Q1 2020 Q1 2021 Q1 2020 Q1 2021 • Sales decrease due to portfolio reshaping actions last year • Adjusted segment
Slide 10: Advanced Surface Technologies – Q1 2021 Performance
Advanced Surface Technologies – Q1 2021 Performance $ in millions Sales Adjusted EBITDA & Margin 20 45% 18 $17.3 +49.0% $54.7 +137.0% 40% 60 16 14 50 35% $36.7 12 $7.3 40 31.6% 10 30% 8 30 25% 6 20 4 20% 19.9% 10 2 0 15% 0 Q1 2020 Q1 2021 Q1 2020 Q1 2021 • Increase driven primarily by strong demand
Slide 11: Engineered Materials – Q1 2021 Performance
Engineered Materials – Q1 2021 Performance $ in millions Sales Adjusted EBITDA & Margin 20 45% 18 40% 90 +7.1% $80.4 +51.8% $75.1 16 35% $12.6 80 14 30% 70 12 25% 60 $8.3 10 50 20% 8 40 15% 15.7% 6 30 10% 11.1% 4 20 5% 2 10 0 0 0% Q1 2020 Q1 2021 Q1 2020 Q1 2021 • Stronger sales in general industria
Slide 12: Balance Sheet, Cash Flow & Capital Allocation
Balance Sheet, Cash Flow & Capital Allocation $ in millions Net Leverage Commentary Reported March 31, 2021 • Strong balance sheet; net debt to adjusted EBITDA* of Credit Facility $0 1.4x and ample liquidity consisting of $232M cash and $389M3 available under revolver Senior Notes1 $346 Term Loan2 $
Slide 13: Updating 2021 Guidance
Updating 2021 Guidance Previous 2021 Guidance* Current 2021 Guidance* (as of 2/23/21) (as of 5/7/21) Sales $1.04B – $1.08B $1.05B – $1.10B Adjusted EBITDA $178M – $188M $190M – $200M Adjusted Diluted EPS $4.32 – $4.66 $4.74 – $5.08 Assumptions: 2021 Interest Expense ($ in Millions) • Anticipate a mo
Slide 14: Closing Comments
Closing Comments Marvin Riley President & Chief Executive Officer
Slide 15: Closing Comments
Closing Comments Enpro is a leading industrial technology company using materials science to push boundaries in semiconductor, life sciences, and other technology-enabled sectors Results demonstrate the benefits of our clear and consistent strategy, the capability center, and portfolio reshaping act
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Slide 17: Appendix
Appendix ©
Slide 18: Enpro (NYSE: NPO) | Attractive Portfolio of Businesses
Enpro (NYSE: NPO) | Attractive Portfolio of Businesses Company Overview 2020 Revenue Contribution Headquarters Charlotte, NC Sales by Segment Sales by Channel Sales by Geography Sales by Market4 Manufacturing Facilities 22 primary 3% 5% 3% 1% 14% 5% Global Employees ~4,400 25% 27% 5% 6% 47% 53% 6% F
Slide 19: Reconciliation of LTM Results
Reconciliation of LTM Results EnPro Industries, Inc. Adjusted Adjusted ($ in millions) Revenue EBITDA EBITDA Margin Plus: Three Months Ended March 31, 2021 $ 279.3 $ 52.0 18.6% Year Ended December 31, 2020 1074.0 168.3 15.7% Less: Three Months Ended March 31, 2020 282.7 40.6 14.4% LTM Ended March 31
Slide 20: Consolidated Adjusted EBITDA (1/2)
Consolidated Adjusted EBITDA (1/2) 1Non-controlling interest compensation allocation represents compensation expense associated with a portion of the rollover equity from the acquisitions of LeanTeq and Alluxa that is subject to reduction for certain types of employment terminations of the LeanTeq a
Slide 21: Consolidated Adjusted EBITDA (2/2)
Consolidated Adjusted EBITDA (2/2) 1Non-controlling interest compensation allocation represents compensation expense associated with a portion of the rollover equity from the acquisitions of LeanTeq and Alluxa that is subject to reduction for certain types of employment terminations of the LeanTeq a
Slide 22: Segment Information
Segment Information Adjusted Segment EBITDA is total segment revenue reduced by operating expenses and other costs identifiable with the segment, excluding acquisition and divestiture expenses, restructuring and impairment expense, non-controlling interest compensation, amortization of the fair valu
Slide 23: Consolidated Adjusted Net Income
Consolidated Adjusted Net Income For the Three Months Ended March 31, 2021 and 2020 (Stated in Millions of Dollars, Except Per Share Data) Management of the Company believes that it would be helpful to the readers of the financial statements to understand the impact of certain selected items on the
Slide 24: Free Cash Flow
Free Cash Flow (Stated in Millions of Dollars) 2021 Q1 Earnings Review 24