Enersys · NYSE:ENS

Enersys — 2024 Wells Fargo Industrials Conference

39 slides from Enersys's conference presentation, Jun 12, 2024

Slide 2: Forward Looking Statements
Forward Looking Statements As a reminder, we will be presenting certain forward-looking statements in this presentation 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 a
Slide 3: EnerSys at a Glance
EnerSys at a Glance F Y 2 0 2 4 K E Y S TAT I S T I C S 1 $4.1B $450M $507M $8.35 10K+ Market Cap2 Adj. Operating Earnings3 Adj. EBITDA3 Adj. Diluted EPS3 Customers G L O B AL FAC I L I T Y B AS E 4 F Y 2 0 2 4 N E T S AL E S $3.6B Business Geography Segments 6% 15% 22% 44% 72% 41% Energy Systems Am
Slide 4: Well-Positioned for Long-Term Profitable Growth
Well-Positioned for Long- Term Profitable Growth Provider of highly differentiated energy solutions with 1 full suite of technologies for diverse end markets Strategically aligned with megatrends in 2 large and growing markets Resilient business model positioned for strong cash 3 flow generation, pr
Slide 5: Executing Our Strategic Vision | Significantly Transformed Portfolio
Executing Our Strategic Vision | Significantly Transformed Portfolio • Improved new product TO D AY • Established vision- • Integrated Alpha and development time driven culture NorthStar acquisitions • Expanded product Innovating, Optimizing, • Built teams to execute • Deepened capabilities lines an
Slide 6: Business Segments
Business Segments ENERGY SYSTEMS NEW VENTURES Power conversion, power distribution, Energy storage and management and energy storage solutions systems for demand charge s New • Communication Networks stem reduction, utility back-up power, Sy Elite Service s V • Data Centers and dynamic fast charging
Slide 7: Foundational Core Modular Platforms
Foundational Core Modular Platforms E N E R G Y S TO R AG E POWER ELECTRONICS Lithium-ion • Advanced, high-efficiency power conversion • Maintenance-free • High voltage power transfer with power • Longer cycle life ems Ne line communication for 5G small cells • Fastest charge rate st Servic w V Sy E
Slide 8: Addressing Global Megatrends in Attractive and Diverse End Markets
Addressing Global Megatrends in Attractive and Diverse End Markets Energy • Modernizing energy grids, storage, and distribution Transition • Shifting market to EVs ~$30B+ Serviceable Energy • Increasing resiliency of electrical infrastructure and grid Addressable Market1 Security • Growing need for
Slide 9: Strategic Priorities Driving Long Term Growth
Strategic Priorities Driving Long Term Growth Increasing Higher Value Solutions • Customer-centric NPIs (volume and mix) Innovate • State-of-the-art technology Compounding Value Creation • Organic hardware and software • Fast Charge and Storage (FC&S) • Scalable projects across Energy Systems, Motiv
Slide 10: Our Sustainability Journey
Our Sustainability Journey Announced Established Scope 1 and full-time Scope 2 Sustainability Launched carbon Target date for Team; joined inaugural Published neutrality Published 2021 diversity external diversity supplemental goals; Scope 3 Published 2023 and employer sustainability engagement envi
Slide 11: Q4'24 & FY'24 Performance
Q4’24 & FY’24 Performance Net Adj Op Adj Adj Free Cash Sales Earnings1 EBITDA1 EPS1 Flow1 $911M $109M $124M $2.08 $109M Q4’24 (8%) Y/Y +2% Y/Y +5% Y/Y +14% Y/Y ($3M) Y/Y $3.6B $450M $507M $8.35 $371M FY’24 (3%) Y/Y +40% Y/Y +31% Y/Y +56% Y/Y +$180M Y/Y Adj Gross Margin1 of 28.0% in Q4 & FY’24 up 310
Slide 12: Bren-Tronics Acquisition
Bren-Tronics Acquisition 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 and product developm
Slide 13: U.S. Lithium Battery Gigafactory
U.S. Lithium Battery Gigafactory E N A B L I N G L O N G - T E R M G R O W T H W I T H R E L I A B L E D O M E S T I C S U P P LY • Optimizes lithium-ion cell sizing for EnerSys battery solutions to meet customer needs • Scale and flexibility with large production capacity and ability to create cust
Slide 14: Looking Ahead: Q1'25 and FY'25 Guidance
Looking Ahead: Q1’25 and FY’25 Guidance1 AS S U M P T I O N S Q1’25 Q1’25 FY’25 • Slightly lower volume on normal seasonality Net Sales $860M – $900M $3,675M – $3,825M FY’25 • MP and Spec healthy demand • Telco/Broadband steady improvements but not Adj. Diluted EPS2 $1.93 – $2.03 $8.55 – $8.95 back
Slide 15: Progress Toward FY'27 Targets
Progress Toward FY’27 Targets F I N A N C I A L A N D O P E R AT I O N A L G O A L S R E M A I N A C H I E VA B L E FY’24 Actual UPSIDE FY’23 FY’25 FY’272 Actual Guidance Targets • Driving maintenance-free sales $3.6B • Investing in capacity flexibility -3% CAGR $3,675M – 8% – 10% • ES margin reset
Slide 16: Compelling Investment Thesis
Compelling Investment Thesis 1 2 3 Strategically positioned in Transformed company expanding markets driven Invigorated leadership delivering innovative by global megatrends team executing a clear solutions and defining the strategy for accelerated future of energy transition earnings growth Playing
Slide 19: Product Portfolio Evolution | Transformed to End-to-End Energy Solutions Provider
Product Portfolio Evolution | Transformed to End-to-End Energy Solutions Provider N ET SA LES MIX ($B) H IG H L IGH T S 1 $3.6 $3.1 110 New Product Introductions 45% $2.4 56% 3.5x Faster New Product Development Time 73% 55% 75 44% 27% UL Approvals FY'17 FY'20 FY'24 Maintenance-free, Systems, and Ser
Slide 20: Inflation Reduction Act (IRA) Enables...
Inflation Reduction Act (IRA) Enables… B AC K G R O U N D ENERSYS COMMITMENT AN N U AL B E N E F I T S 1 $369B in New Tax Credits Accelerating Lithium Strategy Recorded as reduction to COGS • Law in effect 1/1/23 - 12/31/32 with • Invest in U.S. domestic energy growth ‒ Securing domestic lithium cel
Slide 21: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy F U T U R E PR IO R ITIES PRIORITIES FY’21 – FY’24 ($M, cumulative) • Continue TPPL capacity investments & end-to-end solutions • Optimize EOS to drive additional operational efficiencies 1 Invest in Organic Growth (CapEx) ~$320 • Accelerate domestic-sourced l
Slide 23: Q4'24 and FY'24 Results
Q4’24 and FY'24 Results ($M, except EPS) N E T S AL E S AD J O P E R AT I N G E AR N I N G S 1 & M AR G I N $3,709 $3,582 $450 $990 $911 $322 Y/Y Change 12.6% Y/Y Change +4% price $107 $109 8.7% Flat price (7%) volume Flat FX 10.8% 12.0% (7%) volume (1%) FX Q4'23 Q4'24 FY'23 FY'24 Q4'23 Q4'24 FY'23
Slide 24: Adj EPS Bridge & Adj Op Earnings (Q4'24)
Adj EPS1 Bridge & Adj Op Earnings1 Q4’24 YEAR-OVER-YEAR $2.08 ($M) Net Sales AOE1 $1.82 Energy Systems $369 $17.4 Motive Power $395 $58.1 Specialty $147 $8.5 Corporate/Other - $25.2 Total $911 $109.2 2 Sales and earnings in line with expectations; continued volume impact from telco/broadband spendin
Slide 25: Adj EPS Bridge & Adj Op Earnings (FY'24)
Adj EPS1 Bridge & Adj Op Earnings1 FY’24 YEAR-OVER-YEAR $8.35 ($M) Net Sales AOE1 Energy Systems $1,590 $87.0 $5.34 Motive Power $1,456 $214.6 Specialty $536 $31.4 Corporate/Other - $117.2 Total $3,582 $450.2 2 Full year earnings growth driven by positive price/mix cost recapture and IRA benefits $M
Slide 26: Balance Sheet, Cash Flow and Leverage
Balance Sheet, Cash Flow and Leverage S E L E C T E D B AL AN C E S H E E T M E T R I C S 1 S E L E C T E D C AS H F L O W M E T R I C S 2 ($M) Q4’23 Q4’24 ($M) Q4’23 Q4’24 FY’23 FY’24 Cash and Cash Equivalents $347 $333 Cash Flow from $144 $137 $280 $457 Net Debt3 $736 $511 Operations Net Leverage
Slide 28: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Financial Measures This presentation contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles, ("GAAP"). EnerSys' management uses the non-GAAP financial measures “adjusted Net earnings”, “adju
Slide 34: Non-GAAP Reconciliation
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, $22.4 million of restruct
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation L E V E R A G E R AT I O B Y Q U A R T E R Last twelve months ended March 31, December 31, October 1, July 2, March 31, January 1, October 2, July 3, ($ in millions, except ratios) 2024 2023 2023 2023 2023 2023 2022 2022 Net earnings as reported $269.1 $274.1 $242.4 $211.6 $1
Slide 38: Key Performance Indicator
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 39: Thank you.
Thank you. For more information visit us at www.enersys.com EnerSys Global 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 Tel. +1-610-208-1991 6300 Zug Singapore +1-800-538-3627 Switzerla

EnerSys — 2024 Wells Fargo Industrials Conference on 6ix

Enersys — 2024 Wells Fargo Industrials Conference

Slide 1: 2024 Wells Fargo Industrials Conference

Slide 2: Forward Looking Statements

Slide 3: EnerSys at a Glance

Slide 4: Well-Positioned for Long-Term Profitable Growth

Slide 5: Executing Our Strategic Vision | Significantly Transformed Portfolio

Slide 6: Business Segments

Slide 7: Foundational Core Modular Platforms

Slide 8: Addressing Global Megatrends in Attractive and Diverse End Markets

Slide 9: Strategic Priorities Driving Long Term Growth

Slide 10: Our Sustainability Journey

Slide 11: Q4'24 & FY'24 Performance

Slide 12: Bren-Tronics Acquisition

Slide 13: U.S. Lithium Battery Gigafactory

Slide 14: Looking Ahead: Q1'25 and FY'25 Guidance

Slide 15: Progress Toward FY'27 Targets

Slide 16: Compelling Investment Thesis

Slide 17: Q&A

Slide 18: Appendix

Slide 19: Product Portfolio Evolution | Transformed to End-to-End Energy Solutions Provider

Slide 20: Inflation Reduction Act (IRA) Enables...

Slide 21: Disciplined Capital Allocation Strategy

Slide 22: Financial Update

Slide 23: Q4'24 and FY'24 Results

Slide 24: Adj EPS Bridge & Adj Op Earnings (Q4'24)

Slide 25: Adj EPS Bridge & Adj Op Earnings (FY'24)

Slide 26: Balance Sheet, Cash Flow and Leverage

Slide 27: Non-GAAP Reconciliations

Slide 28: Reconciliations of GAAP to Non-GAAP Financial Measures

Slide 29: Non-GAAP Reconciliation

Slide 30: Non-GAAP Reconciliation

Slide 31: Non-GAAP Reconciliation

Slide 32: Non-GAAP Reconciliation

Slide 33: Non-GAAP Reconciliation

Slide 34: Non-GAAP Reconciliation

Slide 35: Non-GAAP Reconciliation

Slide 36: Non-GAAP Reconciliation

Slide 37: Non-GAAP Reconciliation

Slide 38: Key Performance Indicator

Slide 39: Thank you.