Enpro Inc. · NYSE:NPO
Enpro — Baird Global Industrial Conference 2023
21 slides from Enpro's conference presentation, Nov 9, 2023
Slide 1: Investor Presentation
Investor Presentation Baird Global Industrial Conference November 9, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in 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 uncertainties that
Slide 3: Positioned to Deliver Significant Shareholder Value
Positioned to Deliver Significant Shareholder Value 1 2 3 Transformed portfolio to accelerate Enhancing aftermarket Increasing cash flow return on growth in leading-edge, industrial exposure with critical investment through portfolio technology-related businesses with high applications, serving fast
Slide 4: Best-in Class Portfolio of Leading-Edge Businesses
Enpro (NYSE: NPO) | Best-in Class Portfolio of Leading-Edge Businesses September 2023 YTD Revenue Contribution Sales by Segment Sales by Channel Sales by Geography Sales by Market 13 Headquarters Principal Global Charlotte, Manufacturing Employees NC and Service ~3,500 Facilities Financial Overview
Slide 5: A Strong Foundation for Our Future
A Strong Foundation for Our Future Strategic Actions Position Enpro Portfolio with Industry-Leading Profitability in Secular Growth Markets Fairbanks Heavy-Duty Truck Bushing Block Air Springs Polymer Compressor GGB GPT Morse Product Lines Closed 4Q20 Closed 4Q20 Components Products Int’l (CPI) Clos
Slide 6: Sealing Technologies
Sealing Technologies Profile Select Products • Composed of Garlock, STEMCO, and Technetics divisions • Enduring, applied engineering expertise using leading-edge technologies and processes • Strong aftermarket in critical applications that safeguard environments • Extensive proprietary knowledge • D
Slide 7: Advanced Surface Technologies
Advanced Surface Technologies Profile Solutions • Composed of our semiconductor – NxEdge – Technetics Semi – LeanTeq – and innovative optical filter – Alluxa – businesses • Utilizes proprietary technologies and processes with highly differentiated products and solutions • Vertical integration strate
Slide 8: Semiconductor Market Widely Expected to Double Over The Next Decade
Semiconductor Market Widely Expected to Double Over The Next Decade Semiconductor Industry Trends* AST Semiconductor Strategy NxEdge – Technetics Semi – LeanTeq Chip Architectures Evolving and Increasing in Complexity Technology Differentiation Advanced Processing Nodes Enable Artificial Intelligenc
Slide 9: Disciplined, Value-Enhancing Capital Allocation Strategy
Disciplined, Value-Enhancing Capital Allocation Strategy Investing in Long-Term Organic Disciplined and Strong Balance Sheet Growth while Pursuing Balanced Capital Supports Optionality Strategic Acquisitions Allocation ✓ Investing in multiple sources of ✓ Net debt to TTM adjusted EBITDA long-term or
Slide 10: Balance Sheet, Cash Flow & Capital Allocation
Balance Sheet, Cash Flow & Capital Allocation $ in millions Net Leverage Commentary Reported September 30, 2023 Revolving Credit Facility $ — • Strong balance sheet with ample liquidity Term Loan(1,2) $ 301 • Free cash flow* for the nine months ended September Senior Notes(1) $ 350 30, 2023 was $134
Slide 11: 2023 Guidance
2023 Guidance 2023 Guidance* Assumptions (at October 31, 2023) Revenue Flat ~$94-95M Growth Depreciation and Amortization Adjusted Toward Low End ~$30-31M EBITDA** $248M – $256M Net Interest Expense Adjusted 25% Toward Low End Diluted Normalized Tax Rate $6.70 – $7.10 (from 27% last year) EPS** * Fu
Slide 12: Appendix
Appendix Enpro Investor Presentation November 2023 12
Slide 13: Select Semiconductor Industry Outlook Commentary
Select Semiconductor Industry Outlook Commentary 1 2 3 4 1: Source: Applied Materials Q3 Fiscal 2023 Earnings Presentation, August 2023 2: Source: KLA Q1 Fiscal 2024 Earnings Presentation, October 2023 3: Source: ASM, Q3 2023 Earnings Presentation, Oct 2023 4: Source: ASML Investor Day 2022, Novembe
Slide 14: Reconciliation of LTM Results
Reconciliation of LTM Results EnPro Industries, Inc. Adjusted Adjusted ($ in millions) Revenue EBITDA EBITDA Margin Nine Months Ended September 30, 2023 $ 810.2 $ 191.1 23.6% Plus: Year Ended December 31, 2022 1,099.2 257.4 23.4% Less: Nine Months Ended September 30, 2022 827.3 203.9 24.6% LTM Ended
Slide 15: Consolidated Adjusted EBITDA (1/2)
Consolidated Adjusted EBITDA (1/2) For the Year Ended December 31, 2022 (In Millions) 2022 1Non-controlling interest compensation allocation Income from continuing operations attributable to EnPro Industries, Inc., net represents compensation expense associated with a of tax $ 6.7 portion of the rol
Slide 16: Consolidated Adjusted EBITDA (2/2)
Consolidated Adjusted EBITDA (2/2) For the Quarters and Nine Months Ended September 30, 2023 and 2022 (In Millions) Quarters Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Income from continuing operations attributable to EnPro Industries, Inc. $ 8.3 $ 26.2 $ 15.7 $ 64.2 Net
Slide 17: Segment Information (1/2)
Segment Information (1/2) For the Quarters and Nine Months Ended September 30, 2023 and 2022 (In Millions) Reconciliation of Adjusted Segment EBITDA to Income from Continuing Operations Attributable to EnPro Industries, Inc. Quarters Ended Nine Months Ended Sales September 30, September 30, Quarters
Slide 18: Segment Information (2/2)
Segment Information (2/2) For the Quarters and Nine Months Ended September 30, 2023 and 2022 (In Millions) Quarter Ended September 30, 2022 Quarter Ended September 30, 2023 Advanced Advanced Sealing Surface Total Sealing Surface Total Technologies Technologies Segments Technologies Technologies Segm
Slide 19: Consolidated Adjusted Net Income
Consolidated Adjusted Net Income (In Millions, Except Per Share Data) Quarters Ended September 30, (In Millions, Except Per Share Data) Nine Months Ended September 30, 2023 2022 2023 2022 Average Average common common Average Average shares shared common common outstanding, Per outstanding, Per shar
Slide 20: Free Cash Flow
Free Cash Flow (In Millions) Free Cash Flow - Nine Months Ended September 30, 2023 Net cash provided by operating activities $ 154.8 Purchases of property, plant, and equipment (20.7) $ 134.1 Free Cash Flow - Nine Months Ended September 30, 2022 Net cash provided by operating activities $ 111.6 Purc
Slide 21: Thank you
Thank you Enpro Investor Presentation November 2023 21