Exponent, Inc. · NASDAQ:EXPO
Exponent — Investor Presentation (December 2023)
25 slides from Exponent's investor presentation, December 2023
Slide 1: Investor Presentation
E*ponent’ EA Investor Presentation
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures This presentation release contains, and incorporates by reference, certain “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules promulgated pursuant to the Securities Act
Slide 3: When Getting It Right Matters
When Getting It Right Matters Exponent harnesses the power of technical excellence, objectivity and disciplinary diversity to solve our clients’ toughest science, engineering and business challenges 3
Slide 4: Empowering Our Clients with Solutions for a Safe, Healthy, Sustainable World
Empowering Our Clients with Solutions for a Safe, Healthy, Sustainable and Technologically Complex World EXPO EXPOby bythe theNumbers Numbers Overview • Multidisciplinary Consulting Capabilities $ $ $ $ $ • World Class Talent Leveraging Robust Scientific and Engineering Expertise • Solving High Expo
Slide 5: 50+ Years of Positioning Exponent and Our Clients for the Future
50+ Years of Positioning Exponent and Our Clients for the Future Our ecosystem of knowledge has grown and evolved to help our clients meet the challenges they face Acquired Environmental Failure Analysis Health Strategies and Associates (FaAA) Expansion: Test and PTI Environmental was founded Engine
Slide 6: Our Global Footprint
Our Global Footprint North America Europe Atlanta Sacramento Edinburgh Austin Seattle Germany Bellevue Boston Seattle Harrogate Maynard Natick SF Bay Area Ireland Menlo Park Chicago London Oakland Acton Chicago Southern London Warrenville California Nottingham Denver Irvine Detroit Los Angeles Switz
Slide 7: Why Invest in Exponent?
Why Invest in Exponent? Strong Growth Momentum Through Safety, Health and Environmental Trends Multidisciplinary Solutions Driven by Data, Speed and Scale Deep Bench of Scientists and Engineers Across Industries and Geographies Scientific Rigor Positions Our Clients Ahead of the Curve Healthy Balanc
Slide 8: Exponent Is in the Center of Global Macro Trends
Exponent Is in the Center of Global Macro Trends 8
Slide 9: Providing a Multidisciplinary Set of Offerings
Providing a Multidisciplinary Set of Offerings Reactive Proactive Understanding the past with the ultimate goal Empowering our clients to chart a course for of determining root causes of events the future across a full product life cycle Leverage Insights • Litigation Support • Risk Management • Ins
Slide 10: Our World Class Talent
Our World Class Talent 950+ 640+ 50+ Consulting Doctoral-level Staff working Staff professionals at Universities 35+ 250+ 1200+ Staff serving Standards Staff academic on editorial committees articles review and advisory published boards/peer boards served reviewers 10
Slide 11: Attracting, Developing and Rewarding Exceptional People
Attracting, Developing and Rewarding Exceptional People with Diverse Backgrounds and Expertise Is Central to Exponent’s Mission Outreach Recruiting Leveraging science, Sourcing candidates from technology, engineering and increasingly diverse math (STEM) to empower backgrounds and skill sets the comm
Slide 12: Environmental, Social & Governance ("ESG") Our Commitments
Environmental, Social & Governance (“ESG”) Our Commitments Advancement of Diversity and Investment in Safety and the Science Our People Environment 12
Slide 13: How We Make an Impact
How We Make an Impact Advancing Science Investing in Our People Safety & the Environment We are committed to objectivity Attracting, exciting, developing, We help clients innovate and the advancement of science and rewarding exceptional creatively and sustainably, and supporting clients as they peop
Slide 14: Our Bespoke Multidisciplinary Teams
Our Bespoke Multidisciplinary Teams Polymers & Biomedical Environmental Sciences Biomedical Engineering & Sciences Ecological & Biological Sciences Polymer Science & Materials Chemistry Environmental & Earth Sciences Mechanical & Thermal Health Science Chemical Regulation & Food Safety Mechanical En
Slide 15: Diverse Customer Relationships
Diverse Customer Relationships 15 Our Clients 10K 2K FY22 FY22 Engagements Client Count Corporate Legal Government Deep Industry Know-How Construction Chemicals Consumer Products Electronics Energy Food & Beverage Government Sector Industrial Life Sciences Software & Computer Transportation Utilitie
Slide 16: Strong Growth Momentum Through Safety, Health and Environmental Trends
Strong Growth Momentum Through Safety, Health and Environmental Trends TRANSPORTATION UTILITIES CONSUMER LIFE SCIENCES & CHEMICAL ELECTRONICS HEALTHCARE Key • Automation • Aging infrastructure • Product safety and • Digital health • Effects on humans performance Drivers/ • Electrification • Climate
Slide 17: When Getting It Right Matters
When Getting It Right Matters Exponent harnesses the power of technical excellence, objectivity and disciplinary diversity to solve our clients’ toughest science, engineering and business challenges 17
Slide 18: Financial Highlights
18 Financial Highlights 18
Slide 19: Proven Financial Results
Proven Financial Results Revenue ($M) EBITDA Margin1,2 (%) $600 30.4% $513M 32 29.6% $466M 26.5% 27.3% 27.4% 27.0% $500 $417M $400M $380M 24 $400 $348M $300 16 $200 $100 8 $0 0 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Dividends Paid ($M) Free Cash Flow ($M) $118M 60 120 $49M $98M
Slide 20: Capital Allocation
Capital Allocation Cash and Short Term Investments ($M): 2017-2022 2017-2022 350 Cash Returned to $297.7M Shareholders: 300 $215M 250 $242.5M $231.6M $208.6M $173.7M Dividend Payments 200 $161.5M 150 $311M 100 Repurchased Shares (or ~3.9M shares) 50 0 2017 2018 2019 2020 2021 2022 20
Slide 21: Key Metrics – YTD (as of 9/30)
Key Metrics – YTD (as of 9/30) YTD as of YTD as of ($ Millions, except where noted) % Change 9/30/2022 9/30/2023 21 Revenues Before Reimbursements 351.2 383.3 9% Revenues 385.9 413.9 7% EBITDA1 106.1 107.1 1% EBITDA Margin2 (%) 30.2% 27.9% Net Income 79.8 79.4 -0.5% Earnings per share ($) 1.52 1.54
Slide 22: EBITDAS – YTD (as of 9/30)
EBITDAS – YTD (as of 9/30) YTD as of YTD as of ($ Millions) % Change 9/30/2022 9/30/2023 22 Net Income $79.8 $79.4 -1% Add back: Income taxes 21.9 26.4 21% Interest income, net -0.8 -5.2 n/m Depreciation and amortization 5.2 6.5 25% 1 EBITDA 106.1 107.1 1% Stock-based compensation 16.1 17.2 7% 1 EBI
Slide 23: Key Metrics – Q3 2023
Key Metrics – Q3 2023 ($ Millions, except where noted) 2022 2023 % Change 23 Revenues Before Reimbursements 115.1 125.0 9% Revenues 127.2 133.3 5% EBITDA1 34.6 34.5 n/m EBITDA Margin2 (%) 30.0% 27.6% Net Income 24.4 24.5 n/m Earnings per share ($) 0.47 0.48 Average diluted shares outstanding (Millio
Slide 24: EBITDAS – Q3 2023
EBITDAS – Q3 2023 ($ Millions) 2022 2023 % Change 24 Net Income $24.4 $24.5 n/m Add back: Income taxes 9.0 9.5 5% Interest income, net 0.6 1.9 n/m Depreciation and amortization 1.7 2.4 37% 1 EBITDA 34.6 34.5 n/m Stock-based compensation 4.6 4.9 6% 1 EBITDAS $39.2 $39.4 1% 1EBITDA is a non-GAAP finan
Slide 25: About Exponent
About Exponent Exponent is the only premium engineering and scientific consulting firm with the depth and breadth of expertise to solve our clients’ most profoundly unique and urgent challenges. 1967 950+ 50+ Years of Consulting Staff Scientific Excellence 90+ 30+ Technical Offices Across North Disc