EnerSys · NYSE:ENS
EnerSys — Investor Presentation (December 2024)
51 slides from EnerSys's investor presentation, December 2024
Slide 1: Investor Presentation December 2024
Investor Presentation DECEMBER 2024 December 2024 © 2024 EnerSys. All Rights Reserved.
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: Energized Leadership Team Focused on Execution and Accountability
Energized Leadership Team Focused on Execution and Accountability Dave Shaffer Shawn O’Connell Patrice Baumann Andi Funk Jamie Gebbia Joe Lewis Chief Executive Officer President and COO Chief Integrated EVP and CFO VP Corporate and Business Chief Legal and Joined: 2005 Joined: 2011 Supply Chain Offi
Slide 6: Planned Executive Succession
Planned Executive Succession COMMITTED TO SMOOTH TRANSITION • Dave Shaffer, EnerSys CEO, to retire May 2025 • Shawn O’Connell named successor – Promoted1 to President and Chief Operating Officer – Will continue to serve as President, Energy Systems Global until successor named; comprehensive search
Slide 7: Experienced and Diversified Board of Directors
Experienced and Diversified Board of Directors S K I L L S M AT R I X Paul Tufano Caroline Chan Steven Fludder Non-Executive Chair of the VP and General Manager Former CEO, Executive Leadership 100% Board of Directors, EnerSys Network Business Incubator LS Energy Solutions LLC 2015 Division, Intel 2
Slide 8: Empowering Our Team to Innovate and Deliver Differentiated Solutions
Empowering Our Team to Innovate and Deliver Differentiated Solutions MISSION VISION Providing people everywhere with Serving the global community accessible power to help them with mission-critical work and live better stored energy solutions VAL U E S - D R I V E N C U LT U R E Safety & Our Continu
Slide 9: 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 10: Product Portfolio Evolution
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 11: 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 • Communications stem V reduction, utility back-up power, Sy Elite Service s and dynamic fast charging en • Data Centers Pow
Slide 12: 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 13: 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 14: Leveraging Our Sustainable Competitive Advantages
Leveraging Our Sustainable Competitive Advantages Deep Customer Domain Modular Resilient Operational Relationships Expertise Technology Business Model Excellence Customer-centric Product and company Only fully integrated Large, diverse end- Continuous improvement end-to-end solutions differentiation
Slide 15: 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 16: Our Sustainability Goals & Commitments
Our Sustainability Goals & Commitments GO A L S & P R O G R E S S AWARDS & RECOGNITION ENERGY W ATER W A STE GHG EMISSIONS CO2 Reduce energy Reduce water We are working to GOALS intensity per kWh of intensity per kWh of establish ameasurable storage produced by storage produced by waste goal aligned
Slide 17: Sustainability of Products and Services
Sustainability of Products and Services • Driving profitability and growth, with focus on energy transition, electrification, and customer decarbonization goals • Improving products and services for customers’ sustainability needs • Leveraging online customer portal to optimize battery recycling, re
Slide 18: Energy Systems at a Glance
Energy Systems at a Glance FY 2024 KEY STATISTICS1 Net Adj. Operating Global Customers Market Share Sales Earnings2 Installed Base $1.6B $87M 1M+ Multi-National North America - leading market position Systems in Operation Blue Chip Global - high growth opportunities Serving Diverse and Critical End
Slide 19: Well-Positioned to Grow in Attractive Addressable Market
Well-Positioned to Grow in Attractive Addressable Market DRIVERS $400B+ M AR K E T D Y N AM I C S Total Global Network Resilient Power Everywhere Infrastructure Market • Network expansion and capex funded build programs • Ongoing operational ~$20B+ maintenance of networks and facilities Serviceable
Slide 20: Motive Power at a Glance
Motive Power at a Glance FY 2024 KEY STATISTICS1 Installed Base Net Adj. Operating Global Global Charge Countries Sales Earnings2 Market Share Points $1.5B $215M ~500K 121 ~22% Solutions Utilized by Electric Forklifts, Mining, and Other Commercial Electric-Powered Vehicles B R AN D S / P R O D U C T
Slide 21: Well-Positioned to Grow at or Above Market
Well-Positioned to Grow at or Above Market DRIVERS F U T U R E S TAT E Fully-Automated Warehouse Electrification • Decarbonization ~$6.8B • Environmental health and safety Serviceable • Lower cost of operation vs. ICE • Lithium technology enablement Addressable Market Automation • Operational effici
Slide 22: Specialty at a Glance
Specialty at a Glance FY 2024 KEY STATISTICS1 Net Adj. Operating Transportation Customers Market Share3 Sales Earnings2 Installed Base3 Served $536M $31M 1.8M 700+ 30% Trucks U.S. OEM Truck Market T R A N S P O R TAT I O N A E R O S PA C E A N D D E F E N S E 40% Key Innovations Revenue by Key Innov
Slide 23: Positioned to Further Capture Share in Large and Attractive Markets
Positioned to Further Capture Share in Large and Attractive Markets DRIVERS M AR K E T D Y N AM I C S High-Density Resilient Power • Increasing fleet electronic loads – Vehicle tracking systems ~$3.1B • Currently 9% of SAM • 31% OEM – Audio / infotainment / GPS – Stop - start Serviceable • 30% OES –
Slide 24: Bren-Tronics Acquisition Closed July 26, 2024
Bren-Tronics Acquisition Closed July 26, 2024 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
Slide 25: Powering the Future through Energy Management Capabilities
Powering the Future through Energy Management Capabilities S M AR T E N E R G Y L O AD & E N E R G Y E C O S Y S T E M System Input System Output Grocery Stores Commercial Solar Fast Charge & Storage 600kW Lithium-Ion Batteries EV-Pedestal 150kW Commercial Buildings and Multi-Family Units Grid Peak
Slide 26: Accelerating Innovation with Energy Storage and Fast Charge
Accelerating Innovation with Energy Storage and Fast Charge E N D - TO - E N D S O L U T I O N KEY BENEFITS • Storage technologies boost energy load capabilities and increase cost savings • Smart energy and load management ecosystem for reliable fast charging solutions • Modularity allows growth wit
Slide 27: Significant Opportunity in Attractive and Growing Market
Significant Opportunity in Attractive and Growing Market TAR G E T M AR K E T M AR K E T P U B L I C D C C H AR G E R S 1 OPPORTUNITY $217B U.S. CHARGER DEMAND 2 27.5 (M) 1.3 Global Public DCFC Hardware 0.7 Spend Estimate 2022 – 2030 0.6 0.5 0.5 0.1 0.1 0.1 0.0 $7.5B+ Residential Retail & On-the-Go
Slide 28: New Lithium-Ion Cell Gigafactory
New Lithium-Ion Cell Gigafactory CONSTRUCTION TO BEGIN FY’26 Image: Artist Rendition Project Overview Strategic and Financial Benefits Financial Highlights • 500,000 square foot, 5GWh ✓ Supports mix shift to higher performance Capital Investment capacity, lithium-ion cell lithium solutions • $665M c
Slide 29: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy F U T U R E PR IO R ITIES FY’21 – YTD PRIORITIES FY’24 FY’25 ($M, cumulative) ($M) • Continue TPPL capacity investments & end-to-end solutions • Optimize EOS to drive additional operational efficiencies 1 Invest in Organic Growth (CapEx) ~$320 $66 • Accelerate
Slide 30: Looking Ahead: Q3'25 and FY'25 Guidance
Looking Ahead: Q3’25 and FY’25 Guidance AS S U M P T I O N S Q3’25 FY’25 Q3’25 • Healthy demand in Motive Power, Data Center, and A&D Net Sales $920M – $960M $3,675M – $3,765M • Continued improvement in Communications demand • Transportation aftermarket volume growth; Class 8 remains suppressed • In
Slide 31: 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 32: Appendix
Appendix December 2024 © 2024 EnerSys. All Rights Reserved. 32
Slide 33: 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 34: Financial Update
Financial Update December 2024 © 2024 EnerSys. All Rights Reserved.
Slide 35: Q2'25 Performance
Q2’25 Performance $884M $115M $129M $2.12 $3M Net Sales Adj Op Adj Adj EPS1 Free Cash Earnings1 EBITDA1 Flow1 (2%) Y/Y +11% Y/Y +11% Y/Y +15% Y/Y ($88M) Y/Y Adj Op Earnings1 Adj EBITDA1 Margin of 13.0% Margin of 14.6% Adjusted Gross Profit1 Margin of 28.7% up +210bps vs prior year December 2024 1) N
Slide 36: Q2'25 Results
Q2’25 Results N E T S AL E S AD J O P E AR N I N G S 1 & M AR G I N $901 $884 $115 $104 Y/Y Change 11.5% 13.0% (3%) volume (1%) price +2% acquisition Flat FX Q2'24 Q2'25 Q2'24 Q2'25 AD J E B I T D A 1 & M AR G I N AD J D I L U T E D E P S 1 $129 $1.84 $2.12 $116 12.9% 14.6% Q2'24 Q2'25 Q2'24 Q2'25 D
Slide 37: Balance Sheet, Cash Flow and Leverage
Balance Sheet, Cash Flow and Leverage S E L E C T E D B AL AN C E S H E E T M E T R I C S 1 S E L E C T E D C AS H F L O W M E T R I C S 2 ($M) Q4’24 Q2’25 ($M) Q2’24 Q2’25 Cash and Cash Equivalents $333 $408 Cash Flow from Operations $111 $34 Net Debt3 $511 $840 Net Leverage Ratio3 1.0x 1.6x CapEx
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations December 2024 © 2024 EnerSys. All Rights Reserved. 38
Slide 39: 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 40: Non-GAAP Reconciliation
Non-GAAP Reconciliation Q 2 F Y ’ 2 5 A D J U S T E D O P E R AT I N G E A R N I N G S December 2024 © 2024 EnerSys. All Rights Reserved. 40
Slide 41: Non-GAAP Reconciliation
Non-GAAP Reconciliation F Y ’ 2 4 A D J U S T E D O P E R AT I N G E A R N I N G S December 2024 © 2024 EnerSys. All Rights Reserved. 41
Slide 42: Non-GAAP Reconciliation
Non-GAAP Reconciliation Q2 FY’25 ADJUSTED EBITDA December 2024 © 2024 EnerSys. All Rights Reserved. 42
Slide 43: Non-GAAP Reconciliation
Non-GAAP Reconciliation FY’24 ADJUSTED EBITDA December 2024 © 2024 EnerSys. All Rights Reserved. 43
Slide 44: Non-GAAP Reconciliation
Non-GAAP Reconciliation Q2 FY’25 ADJUSTED DILUTED EPS December 2024 © 2024 EnerSys. All Rights Reserved. 44
Slide 45: Non-GAAP Reconciliation
Non-GAAP Reconciliation FY’24 ADJUSTED DILUTED EPS December 2024 © 2024 EnerSys. All Rights Reserved. 45
Slide 46: Non-GAAP Reconciliation
Non-GAAP Reconciliation L E V E R A G E R AT I O B Y Y E A R (1) The $85.8 million adjustment to EBITDA in the last twelve months ending March 31, 2024 primarily related to $30.6 million of non-cash stock compensation, $40.7 million of restructuring and other exit charges, impairment of indefinite-l
Slide 47: 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 (1) The $79.9 million adjustment to EBITDA in the last twelve months ending September 29, 2024 primarily related to $29.7 million of non-cash stock compensation, $38.9 million of restructuring and other exit charges, impairment of in
Slide 48: Non-GAAP Reconciliation
Non-GAAP Reconciliation FREE CASH FLOW December 2024 © 2024 EnerSys. All Rights Reserved. 48
Slide 49: Non-GAAP Reconciliation
Non-GAAP Reconciliation ADJUSTED GROSS PROFIT AND GROSS MARGIN December 2024 © 2024 EnerSys. All Rights Reserved. 49
Slide 50: 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 51: Thank you.
Thank For more you. information visit us at www.enersys.com Thank you. For more information visit us at www.enersys.com World Headquarters EnerSys EMEA EnerSys APAC 2366 Bernville Road EH Europe GmbH No. 85, Tuas Avenue 1 Reading, PA 19605 USA Baarerstrasse 18 Singapore 639518 +1 610-208-1991 / +1 8