Enersys · NYSE:ENS

Enersys — Investor Day (June 2023)

119 slides from Enersys's investor day presentation, Jun 15, 2023

Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation, and oral statements made regarding the subjects of this presentation, contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act, which may include, but are not limited to, statement
Slide 4: Agenda
Agenda 8:30 AM Start 10:20 AM Return Welcome & Opening Remarks Optimizing Operational Excellence Lisa Hartman | VP, Investor Relations Patrice Baumann | SVP, Operations and Supply Chain Playing a Critical Role in Accelerating Energy Transition Innovating Energy Solutions Dave Shaffer | President and
Slide 5: Playing a Critical Role in Accelerating Energy Transition
Playing a Critical Role in Accelerating Energy Transition D AV E S H A F F E R PRESIDENT AND CEO June 2023 © 2023 EnerSys. All Rights Reserved.
Slide 6: 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 7: 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, pro
Slide 8: 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 9: 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 L ES M IX H IG H L IGH T S ($B) $3.7 New Product 110 Introductions $3.1 44% Faster New Product $2.4 3.5x Development Time 56% 73% 56% 75 UL Approvals 44% 27% Increase in FY'17 FY'20 FY'23 288% Engineers Mainten
Slide 10: EnerSys at a Glance
EnerSys at a Glance F Y 2 0 2 3 K E Y S TAT I S T I C S 1 $4.3B $322M $388M $5.34 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 3 N E T S AL E S $3.7B Business Geography Segments 6% 14% 21% 39% 47% 73% Energy Systems Am
Slide 11: Business Segments
Business Segments ENERGY SYSTEMS Power conversion, power distribution, and energy storage solutions • Communication Networks • Data Centers • Industrial Power, Utilities, and Renewable Energy MOTIVE POWER Power batteries and chargers for S P E C I ALT Y electric forklift trucks and other industrial
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 line communication for 5G small cells • Fastest charge rate • Wireless power transfer
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: Three Pillar Strategic Framework
Three Pillar Strategic Framework Increasing Higher Value Solutions – Customer-centric NPIs (volume and mix) Innovate – State-of-the-art technology – Organic hardware and software Compounding Value Creation Expanding Margins – Fast Charge and Storage (FC&S) – Operational excellence to – Scalable proj
Slide 16: Exploring U.S. Lithium Battery Gigafactory
Exploring U.S. Lithium Battery Gigafactory OPPORTUNITIES • Entered non-binding MOU with Verkor SAS, to explore • Enables long-term growth for both development of lithium-ion battery gigafactory in U.S. companies – Verkor is a proven European technology leader • Optimizes cell sizing in battery solut
Slide 17: Committed to a Sustainable Future
Committed to a Sustainable Future SUSTAINABILITY OF ENVIRONMENTAL OUR PEOPLE SUSTAINABILITY PRODUCTS AND SERVICES STEWARDSHIP AND COMMUNITY GOVERNANCE • Driving profitability and growth, with • Tracking emissions metrics • Committed to embedding DEI in • Assigned Board-level oversight focus on energ
Slide 18: Energized Leadership Team Focused on Execution and Accountability
Energized Leadership Team Focused on Execution and Accountability HIGHLIGHTS  Cultivating a high- Dave Shaffer Patrice Baumann Andi Funk Joe Lewis Mark Matthews performance culture President and CEO SVP, Operations EVP and CFO SVP, General Counsel, Chief SVP, Specialty, Global Joined: 2005 and Supp
Slide 19: Experienced and Diversified Board of Directors
Experienced and Diversified Board of Directors S K I L L S M AT R I X Arthur Katsaros Caroline Chan Hwan-Yoon Chung Non-Executive Chair of the VP and General Manager Managing Director, Executive Leadership 100% Board of Directors, EnerSys Network Business Incubator DCP Capital Joined: 2005 Division,
Slide 20: Clear Path to Achieving FY'27 Targets
Clear Path to Achieving FY’27 Targets NET AD J . O P E R AT I N G AD J . AD J . S AL E S M AR G I N 1 E B I T D A1 EPS1 FY’27 8% - 10% 14% - 16% $850M - $950M $11.00 - $13.00 Targets FY’23-27E CAGR + reinvestment of capital for additional shareholder value creation  Resilient business model  Stron
Slide 21: Providing Energy Systems to Critical Industries
Providing Energy Systems to Critical Industries DREW ZOGBY P R E S I D E N T, E N E R G Y S Y S T E M S , G L O B A L June 2023 © 2023 EnerSys. All Rights Reserved.
Slide 22: Key Messages | Energy Systems
Key Messages | Energy Systems 1 Powering critical industries with essential energy solutions Accelerating proliferation and consumption 2 of broadband and telecom data Providing unique combination of power systems packages 3 with exclusive conversion and backup technology 4 Enabling resilient and re
Slide 23: Energy Systems at a Glance
Energy Systems at a Glance FY 2023 KEY STATISTICS1 Net Adj. Operating Global Customers Market Share Sales Earnings2 Installed Base $1.7B $86M 1M+ Multi-National North America - leading market position Systems in Operation Blue Chip Global - high growth opportunities Serving Diverse and Critical End
Slide 24: Multiple, Critical Energy Systems Touch Points
Multiple, Critical Energy Systems Touch Points K E Y S TAT S • 700K critical broadband In-Building Wireless power systems Data • Leading battery share in Center these segments • Breakthrough 5G small cell Macro Core Cell and macro tower site MEC powering technologies Fixed Wireless Access MEC TOUCH
Slide 25: Accelerating Innovative Energy Solutions
Accelerating Innovative Energy Solutions C R I T I C AL I N D U S T RY L E AD I N G AC C E L E R AT I N G I N D U S T RY N E E D S TECHNOLOGY EVOLUTION SOLUTIONS OFFERING • Scalable power to meet • Tailored offerings from foundational • Configuring solutions faster and better increasing demand platf
Slide 26: Integrated and Modular Solutions
Integrated and Modular Solutions Core Building Blocks Global Service Capabilities Engineered System • Engineering Solutions • Installation + • Preventative Maintenance AC / DC Power Intelligent Software • Construction Systems Management & Control • Provisioning • Monitoring Software Integrated Indoo
Slide 27: 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 28: How We Win
How We Win Integrated Relationships Technology Responsiveness Global Solutions Application Scale • Modular, scalable core • Trusted brands with • Intelligence-enabled • Faster innovation time • Common building building blocks with 40+ years industrial hardware to market enabled by blocks for high vo
Slide 29: Executing Clear Solutions Strategy
Executing Clear Solutions Strategy • Tailored applications for complete energy solutions • Resilient energy storage and high reliability systems Innovate • Robust energy storage technology that bridges chemistries • Share global expertise and configure solutions from full product portfolio • Design
Slide 30: Local Capabilities and Global Portfolio
Local Capabilities and Global Portfolio Innovate G L O B AL RECENT SYSTEMS OUR UNIQUE SOLUTION S E C TO R N E E D PROJECT WINS • Complete energy solution versus • Integrating best practices in key  CPUC extended network component sales account management run mandate • Unique localization requiremen
Slide 31: Providing HyperBoost 5G Macro Cells to Communication Networks
Providing HyperBoost 5G Macro Cells Optimize to Communication Networks C U S TO M E R N E E D OUR UNIQUE SOLUTION OUTCOME • Add 5G capabilities to HyperBoost Critical Solution  Close collaboration with existing sites key accounts results in End-to-end system complete solution aligned • Existing cop
Slide 32: XRT Extended Run Time Power Systems | CPUC Mandate
XRTTM Extended Run Time Power Systems | Accelerate CPUC Mandate Deepening Relationships Through Innovation June 2023 CPUC: California Public Utilities Commission © 2023 EnerSys. All Rights Reserved. 32
Slide 33: XRT Extended Run Time Power Systems
XRTTM Extended Run Time Accelerate Power Systems C P U C O P E R ATO R OUR UNIQUE SOLUTION OUTCOME M AN D AT E • Create backup power to Cutting-Edge and Differentiated Solution  Highest energy density to address potential grid outages extend run times with remote Industry-first Technology Storage f
Slide 34: Summary of Energy Systems Opportunity
Summary of Energy Systems Opportunity M I L E S TO N E S 6% - 8% 500K+ Sites Revenue CAGR Small Cell Build-Out FY’23-27E FY’23-27E TAK E AWAY S • Powering critical industries with essential solutions • Accelerating proliferation and consumption of broadband and telecom data • Providing unique combin
Slide 35: Enabling Electrification and Automation
Enabling Electrification and Automation S H AW N O ' C O N N E L L P R E S I D E N T, M O T I V E P O W E R , G L O B A L June 2023 © 2023 EnerSys. All Rights Reserved.
Slide 36: Key Messages | Motive Power
Key Messages | Motive Power Leader in expanding powered device market and 1 continuing to capture share Energy solutions and technology partner of choice 2 leveraging unique chemistry, services, and systems capabilities Customer-centric team providing deep expertise and 3 holistic solutions for lowe
Slide 37: Motive Power at a Glance
Motive Power at a Glance FY 2023 KEY STATISTICS1 Installed Base Net Adj. Operating Global Global Charge Countries Sales Earnings2 Market Share Points $1.5B $179M ~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 38: 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 ~$6.8B Electrification • Decarbonization • Environmental health and safety Serviceable • Lower cost of operation vs. ICE • Lithium technology enablement Addressable Market Automation • Operational effici
Slide 39: How We Win
How We Win RECOGNIZED LEADER CUSTOMER-CENTRIC DECADES OF EXPERTISE INDUSTRY-LEADING IN FORKLIFT ELECTRIC SOLUTIONS FOR A BROAD DELIVERING CRITICAL TEAM AND POWER SYSTEMS SET OF INDUSTRIES ENERGY SOLUTIONS PRODUCT OFFERINGS • 3 battery chemistries • Logistics • Solve energy challenges • Strong sales
Slide 40: Executing Clear Solutions Strategy
Executing Clear Solutions Strategy • Energy system seamlessly communicates with components • State-of-the-art technology – NexSys® TPPL and lithium batteries Innovate – Wireless charging • Cloud-based software for fleet management • Data analytics • Site modeling capabilities Optimize • Holistic ene
Slide 41: Diverse Chemistries and Broad Technologies Provide Optionality
Diverse Chemistries and Broad Technologies Innovate Provide Optionality I N N O VAT I V E S O L U T I O N S CLOSED LOOP SYSTEM TPPL and Lithium-ion + • Maintenance-free solutions • Sustainable Wireless Wired • Optimized for wireless charging Charging Charging • TPPL: Light / medium-duty applications
Slide 42: Enabling Customers to Meet Sustainability Goals through EnSite
Enabling Customers to Meet Optimize Sustainability Goals through EnSite C U S TO M E R N E E D UNIQUE SOLUTION OUTCOME • Address EHS concerns EnSite™ Software Proven Hybrid Solution  New customer win with – Operator fatigue / turnover NexSys® iON & TPPL Batteries 3 additional facilities signed – He
Slide 43: Transitioning Distribution Centers to Maintenance-Free
Transitioning Distribution Centers Optimize to Maintenance-Free C U S TO M E R N E E D UNIQUE SOLUTION OUTCOME • Eliminate daily battery changes EnSite™ Software Proven Solution  Converted 3,500 batteries and weekly watering NexSys® TPPL Batteries and Chargers and chargers to TPPL • Address EHS ris
Slide 44: Driving Efficiencies through E Connect Data Analytics
Driving Efficiencies through Accelerate E ConnectTM Data Analytics OUTCOME SMART BATTERY BATTERY OPERATIONS DASHBOARD MANAGEMENT SYSTEM  Prevent early failures with proactive monitoring  Prolong product life with regular maintenance BATTERY MODULAR CHARGING MONITORING DEVICE TECHNOLOGY  Anticipat
Slide 45: Summary of Motive Power Opportunity
Summary of Motive Power Opportunity M I L E S TO N E S 5% - 7% 35% - 45% Revenue CAGR Maintenance-free Revenue FY’23-27E by FY’27E TAK E AWAY S • Leader in expanding powered device market and continuing to capture share • Energy solutions and technology partner of choice leveraging unique chemistry,
Slide 46: Powering Applications with Innovative Solutions
Powering Applications with Innovative Solutions M A R K M AT T H E W S S V P, S P E C I A L T Y, G L O B A L June 2023 © 2023 EnerSys. All Rights Reserved.
Slide 47: Key Messages | Specialty
Key Messages | Specialty Established innovator in medium and heavy-duty trucking and 1 aerospace and defense markets Customer-integrated teams align technology roadmaps 2 to increase efficiency and power with mission-critical solutions James Webb Space Telescope Clear strategic vision to further cap
Slide 48: Specialty at a Glance
Specialty at a Glance FY 2023 KEY STATISTICS1 Net Adj. Operating Transportation Customers Market Share3 Sales Earnings2 Installed Base3 Served $519M $39M 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 49: Driving Innovative Solutions
Driving Innovative Solutions T R AN S P O R TAT I O N AE R O S PAC E AN D D E F E N S E Evolving Needs Evolving Needs • Maximizing fleet up-time • High cycle life / reliability • Increasing anti-idle laws and • Transition to TPPL from decarbonization efforts flooded lead-acid batteries • Growing ele
Slide 50: 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 ~$3.1B • Increasing fleet electronic loads • Currently 9% of SAM – Vehicle tracking systems – Audio / infotainment / GPS • 31% OEM – Stop - start Serviceable • 30% OES –
Slide 51: How We Win
How We Win CUSTOMER-DRIVEN RECOGNIZED BATTERY CUSTOMER-FOCUSED HIGH CUSTOMER PUSH FOR TECHNOLOGY LEADER SOLUTIONS PROVIDER RETENTION RATES BEST-IN-CLASS BATTERIES IN OEMS Transportation Leader in high-density and Unique hardware and software Best-in-class uptimes drive Fleets specify Odyssey® extend
Slide 52: Executing Clear Solutions Strategy
Executing Clear Solutions Strategy • Co-innovating for specialized, unique product offerings • Integrating battery intelligence (ACE Technology) • Developing cloud software for fleet management Innovate • Increasing energy density, power capability, and battery cycle life • Best-in-class customer ex
Slide 53: Co-Developing Systems with Global Truck OEMs
Co-Developing Systems with Innovate Global Truck OEMs C U S TO M E R B AT T E RY O U R AD VAN TAG E D OUTCOME S P E C I F I C AT I O N S SOLUTIONS • Increased battery life and reliability World’s First Ultra High-Performance  <0.5% failure rate on 70K+ Pure Lead Battery with Award-Winning batteries
Slide 54: Expanding Distribution Capabilities
Expanding Distribution Capabilities Optimize B AC K G R O U N D AC T I O N S TAK E N OUTCOME • Existing distribution network could • Opened new Missouri distribution center  Increasing vehicle uptime not support lead-time requirements • Integrated ACE technology into  Reducing battery field issues
Slide 55: Quicker Integration and Winning Next Generation
Quicker Integration and Accelerate Winning Next Generation B AC K G R O U N D K E Y I N I T I AT I V E S OUTCOME • Fleets demanding increased • Leveraging strong OEM  U.S. Transportation: TPPL battery production for market presence 17% YoY growth aftermarket needs • Integrating Odyssey® batteries a
Slide 56: Summary of Specialty Opportunity
Summary of Specialty Opportunity M I L E S TO N E S 10% - 12% 22% Revenue U.S. MD / HD CAGR Aftermarket Share FY’23-27E by FY’27E TAK E AWAY S • Established innovator in medium and heavy-duty trucking and aerospace and defense markets • Customer-integrated teams align technology roadmaps to increase
Slide 59: Optimizing Operational Excellence
Optimizing Operational Excellence PAT R I C E B A U M A N N S V P, O P E R A T I O N S A N D S U P P L Y C H A I N June 2023 © 2023 EnerSys. All Rights Reserved.
Slide 60: Key Messages
Key Messages Driving operational excellence enabled by 1 EnerSys Operating System (EOS) Executing proven playbook to further improve productivity 2 and efficiency across sites Improving TPPL revenue capacity by $550M - $600M 3 within existing footprint to meet demand while reducing costs by $35M - $
Slide 61: Executing Proven Playbook | Arras Site
Executing Proven Playbook | Arras Site CONTINUOUS IMPROVEMENT B AC K G R O U N D OUTCOME THROUGH EOS • Site equipped with Data tracked to MDIs  Improved cycle times with state-of-the-art equipment Root-cause analysis performed existing equipment and technology  Reduced changeover time • Lacked suf
Slide 62: Applying Arras Success to Springfield for Continued Capacity Improvement
Applying Arras Success to Springfield for Continued Capacity Improvement TPPL SPRINGFIELD L E V E R AG I N G E O S FY’20 – FY’23 OUTCOME R E V E N U E C APAC I T Y TO O L S More than doubled output Increasing TPPL capacity to despite COVID and meet growth objectives supply chain disruptions based on
Slide 63: Increasing Output through Automation
Increasing Output through Automation N O R T H S TAR U P G R AD E D L E V E R AG I N G E O S OUTCOMES EQUIPMENT FY’20 EQUIPMENT TO O L S Multi Alloy Caster • Leveraged manufacturing expertise  3x output vs. 1 perforator • Integrated Continuous Casting  Reduced coil changeover (ConCast) machines ti
Slide 64: Summary of Operational Excellence Opportunity
Summary of Operational Excellence Opportunity M I L E S TO N E S $550M - $600M $35M - $45M Additional TPPL Cost Productivity Revenue Capacity Savings by FY’27E by FY’27E TAK E AWAY S • Driving operational excellence enabled by EOS • Following proven playbook for further productivity and efficiency i
Slide 66: Key Messages
Key Messages Leveraging investments in core modular platforms for 1 rapid innovation and scalability Expanding share within energy ecosystem with 2 end-to-end solutions Deepening customer relationships through 3 systems and service approach Accelerating capabilities to support expansion of 4 new sol
Slide 67: Future Charging Infrastructure
Future Charging Infrastructure Public fast charging availability plays key role in EV adoption, expands customer use cases, and provides confidence during longer trips W O R K / R E S I D E N T I AL C O M M E R C I AL U LT R A- FAS T C H AR G I N G FAS T C H AR G E ‘ R E F U E L L I N G ’ S TAT I O
Slide 68: Addressing Future Needs for Fast and Reliable EV Charging
Addressing Future Needs for Fast and Reliable EV Charging Storage Technologies Assist in Delivering Energy kW During High Demand Hours2 Projected Number of Charging Ports by 2030 to Support EV Transition1 250K+ 400K+ U.S. Europe (73%) kW “Problems include broken “Not only is the availability of scre
Slide 69: Bringing Reliable Power to Customers
Bringing Reliable Power to Customers Proprietary Software for Energy Management Core Modular Platforms Energy Systems Motive Power Software High-Energy Density Storage ~500K Motive DC chargers Devices with advanced lithium based using installed globally edge computing and proprietary safety features
Slide 70: 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 EV-Pedestal 150kW Commercial Solar Fast Charge & Storage 600kW Lithium-Ion Batteries Commercial Buildings and Multi-Family Units Grocery Stores Grid Peak
Slide 71: Accelerating Innovation with Fast Charge & Storage
Accelerating Innovation with Fast Charge & Storage E N D - TO - E N D S O L U T I O N KEY BENEFITS • Smart energy and load management ecosystem for reliable fast charging solutions • Solar panel integration in decentralized system enables power in rural areas • Modularity allows growth with the mark
Slide 72: Core Modular Platform | Energy Storage
Core Modular Platform | Energy Storage FA S T C H A R G E & S T O R A G E D E E P D I V E E N D - TO - E N D S O L U T I O N K E Y D I F F E R E N T I ATO R S • 600kWh (expandable in 1.1MWh) lithium-ion batteries • High energy density in a small footprint • Proprietary fire prevention / countermeasu
Slide 73: Core Modular Platform | Power Electronics
Core Modular Platform | Power Electronics FA S T C H A R G E & S T O R A G E D E E P D I V E E N D - TO - E N D S O L U T I O N K E Y D I F F E R E N T I ATO R S • 150kW/pedestal integrated DC fast chargers • Supports dynamic charging between pedestals • Fully solar compatible • Grid integration – a
Slide 74: Core Modular Platform | Software
Core Modular Platform | Software FA S T C H A R G E & S T O R A G E D E E P D I V E ALWAY S C U S TO M E R C R M CONNECTED I N T E G R AT I O N K E Y D I F F E R E N T I ATO R S AI Cloud Platform Provides Full Suite of Solutions Customers Grid • Charging status • AI-based load prediction • Station l
Slide 75: 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 U.S. CHARGER DEMAND $217B 27.5 2 (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 76: Summary of Innovation Opportunity
Summary of Innovation Opportunity M I L E S TO N E S 20% - 30% $400M - $700M Revenue from NPIs FC&S Revenue by FY’27E by FY’27E TAK E AWAY S • Leveraging investments in core modular platforms for rapid innovation and scalability • Expanding within energy ecosystem with scalable and modular systems t
Slide 78: Financial Outcomes | Key Messages
Financial Outcomes | Key Messages Accelerating growth in diverse and expanding end-markets 1 with offerings that are critical enablers of global megatrends Expanding profit through revenue mix from higher value 2 products, EOS, and positive OpEx leverage Leveraging strong and flexible balance sheet
Slide 80: FY'20 to FY'23 Financial Performance
FY’20 to FY’23 Financial Performance N E T S AL E S AD J . O P E AR N I N G S 1 AD J . D I L U T E D E P S 1 ($B) ($M) Includes $17M IRA Includes $0.42 IRA 6.3% $3.7 3.9% $3.1 CAGR $287 $322 4.5% CAGR $4.68 $5.34 CAGR FY'20 FY'23 FY'20 FY'23 FY'20 FY'23 K EY D R IVER S • Robust demand from growing m
Slide 81: FY'20 to FY'23 Bridge
FY’20 to FY’23 Bridge AD J . D I L U T E D E P S 1 ~20% 4.5% Pro Forma CAGR CAGR Segment Performance Operational Efficiencies and Wins Headwinds • Capitalizing on high-growth end-markets • EOS waste elimination and footprint optimization • FX and interest rates • Significant price / mix achievements
Slide 82: Strong and Flexible Balance Sheet
Strong and Flexible Balance Sheet SUMMARY CAPITAL STRUCTURE ($M, 03/31/2023) Strong balance sheet with significant Cash & Cash Equivalents $347 upcoming cash generation supported by earnings growth and $850M Revolving Credit Facility1 $245 drawn disciplined POC management 2026 Term Loan (USD)1 $427
Slide 84: Accelerating Growth in Diverse End Markets
Accelerating Growth in Diverse End Markets Total EnerSys: 8% – 10% Net Sales FY’23 – 27E CAGR Energy Systems Motive Power Specialty Fast Charge & Storage CAGR 6% – 8% 5% – 7% 10% – 12% Incremental • Accelerating higher-tech • Growing automation and • Capturing market share • Demonstrates ability to
Slide 85: Expanding Margin and Growing Profits
Expanding Margin and Growing Profits D R IVER S AD J . O P E R AT I N G E AR N I N G S 1 Accelerate Volume Growth $750M - • 8% – 10% net sales CAGR through FY’27 $850M • Capitalize on megatrends in growing end-markets • Increase share in under-served markets • Accretive contribution from FC&S in ear
Slide 86: Significant Free Cash Flow Generation
Significant Free Cash Flow Generation F R EE C A SH F L O W 1 D R IVER S • Revenue and earnings growth $1.2B - $1.6B ‒ Improved volume and price / mix FY’24E – FY’27E ‒ EOS savings IRA Benefit ‒ Positive OpEx leverage • POC normalization – reduce $0.5B average percent of net sales from FY’20 – FY’23
Slide 87: Disciplined Capital Allocation
Disciplined Capital Allocation F U T U R E PR IO R ITIES 1 PRIORITIES FY’20 – FY’23 ($M, cumulative) • Continue investments in TPPL capacity and end-to-end capabilities 1 Invest in Organic Growth (CapEx) ~$330 • Optimize EOS to drive additional operational efficiencies • Accelerate lithium strategy
Slide 88: Strategic and Accretive M&A
Strategic and Accretive M&A S T R AT E G I C F I LT E R S F I N AN C I AL F I LT E R S Aligns with Growth Priorities Cost and/or Revenue Synergies Accelerates Technical Evolution in Our Markets Accretive to Growth / Earnings Adds Differentiating Technology for Portfolio Transformation ROIC > WACC In
Slide 89: 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 91: Clear Path to Achieving FY'27 Targets
Clear Path to Achieving FY’27 Targets NET AD J . O P E R AT I N G AD J . AD J . S AL E S M AR G I N 1 E B I T D A1 EPS1 FY’23 6.3% 8.7% $388M $5.34 Baseline FY’20-23 CAGR FY’27 8% - 10% 14% - 16% $850M - $950M $11.00 - $13.00 Targets FY’23-27E CAGR + reinvestment of capital for additional shareholde
Slide 92: Flexible and Resilient Business Model
Flexible and Resilient Business Model DOWNSIDE F Y ’ 2 7 E B AS E L I N E UPSIDE -15% +15% Net Sales $4.2B – $4.6B $5.8B – $6.2B $5.0B – $5.4B 12% – 14% Adj. Operating Earnings1 15% – 18% 14% – 16% $600M – $750M Adj. EBITDA1 $1,000M – $1,200M $850M – $950M Adj. EPS1 $8 – $10 (Pre-Excess Capital Rein
Slide 93: Key Takeaways
Key Takeaways Accelerating growth in diverse and expanding end-markets 1 with offerings that are critical enablers of global megatrends Expanding profit through revenue mix from higher value 2 products, EOS, and positive OpEx leverage Leveraging strong and flexible balance sheet with 3 clear capital
Slide 95: 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 97: Thank you.
Thank you. Trademarks and logos are the property of EnerSys and its affiliates, except for the trademarks and logos of trade associations, agencies and other organizations presented, www.enersys.com which are the property of their respective owners. June 2023 © 2023 EnerSys. All Rights Reserved. 97
Slide 100: 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 107: Non-GAAP Reconciliation
Non-GAAP Reconciliation L E V E R A G E R AT I O (1) The $51.7 million adjustment to EBITDA in fiscal 2023 primarily related to $26.4 million of non-cash stock compensation, $22.4 million of restructuring and other exit charges, impairment of indefinite-lived intangibles of $0.5 million, and $1.4 mi
Slide 109: Dave Shaffer
Leadership Bios Dave Shaffer President and CEO Mr. Shaffer was appointed Director, President and Chief Executive Officer effective April 2016. He served as our President and Chief Operating Officer from November 2014 through March 2016, and our President, Europe, Middle East & Africa (EMEA) from Jan
Slide 110: Andi Funk
Leadership Bios Andi Funk EVP and CFO Ms. Funk has served as Executive Vice President and Chief Financial Officer since April 1, 2022. She joined EnerSys in December 2018 as Vice President Finance - Americas. Prior thereto, from 2013 to 2018, Ms. Funk served as the Chief Executive Officer for Cambri
Slide 111: Joern Tinnemeyer
Leadership Bios Joern Tinnemeyer SVP and CTO Mr. Tinnemeyer has served as Senior Vice President and Chief Technology Officer since October 2017. He joined EnerSys in August 2016 as its Vice President and Chief Technology Officer. Mr. Tinnemeyer is responsible for global engineering, global quality,
Slide 112: Drew Zogby
Leadership Bios Drew Zogby President, Energy Systems – Global Mr. Zogby has served as President Energy Systems Global since July 2020. Prior thereto he served as President, Energy Systems – Americas since April, 2019. He joined EnerSys upon completion of the acquisition of Alpha Technologies in Dece
Slide 113: Shawn O'Connell
Leadership Bios Shawn O’Connell President, Motive Power – Global Mr. O’Connell has served as our President Motive Power Global since July 2020. Prior thereto, he served as our President, Motive Power - Americas since April 2019, Vice President - Reserve Power Sales and Service for the Americas from
Slide 114: Mark Matthews
Leadership Bios Mark Matthews SVP, Specialty – Global Mr. Matthews has served as our Senior Vice President Specialty Global since July 2020. Prior thereto, he served as Vice President, EnerSys Advance Systems since January 2017, and Senior Director of Sales and Marketing from September 2016 to Janua
Slide 115: Patrice Baumann
Leadership Bios Patrice Baumann SVP, Operations and Supply Chain Mr. Baumann has served as Senior VP of Operations & Supply Chain since August 2018. Prior thereto, he was employed as the Global VP of Integrated Supply Chain for the Enclosures Division of nVent, a spinoff of Pentair, and worked in va
Slide 116: Shannon Thomas
Leadership Bios Shannon Thomas Chief Human Resources Officer Ms. Thomas has served as Chief Human Resources Officer since joining EnerSys in May 2023. Prior thereto, she was Vice President HR, Total Rewards and HR Operations at The Chemours Company. She has over 20 years’ experience as a HR professi
Slide 117: Philipp Michalksy
Leadership Bios Philipp Michalksy Chief Information Officer Mr. Michalsky was appointed Senior Vice President and Chief Information Officer of EnerSys in 2021. He served as Director of IT for EnerSys’ EMEA region from 2016 to 2021. Prior thereto, he was Global Director Business Systems at Jacob Holm
Slide 118: Joe Lewis
Leadership Bios Joe Lewis SVP, General Counsel, Chief Compliance Officer & Secretary Mr. Lewis joined EnerSys in June of 2005 and has served in various roles in the EnerSys Legal Department, currently serving as Senior Vice President, General Counsel, Chief Compliance Officer, and Secretary. He has
Slide 119: Lisa Hartman
Leadership Bios Lisa Hartman VP, Investor Relations Ms. Hartman has served as Vice President of Investor Relations since joining EnerSys in February 2022. Prior to that, she was Senior Vice President, Head of Investor Relations at Redwood Trust, Inc. Prior to joining Redwood in 2018, she worked at J

EnerSys — Investor Day (June 2023) on 6ix

Enersys — Investor Day (June 2023)

Slide 1: Investor Day

Slide 2: Welcome & Opening Remarks

Slide 3: Forward-Looking Statements

Slide 4: Agenda

Slide 5: Playing a Critical Role in Accelerating Energy Transition

Slide 6: Empowering Our Team to Innovate and Deliver Differentiated Solutions

Slide 7: Well-Positioned for Long-Term Profitable Growth

Slide 8: Executing Our Strategic Vision | Significantly Transformed Portfolio

Slide 9: Product Portfolio Evolution | Transformed to End-to-End Energy Solutions Provider

Slide 10: EnerSys at a Glance

Slide 11: Business Segments

Slide 12: Foundational Core Modular Platforms

Slide 13: Addressing Global Megatrends in Attractive and Diverse End Markets

Slide 14: Leveraging Our Sustainable Competitive Advantages

Slide 15: Three Pillar Strategic Framework

Slide 16: Exploring U.S. Lithium Battery Gigafactory

Slide 17: Committed to a Sustainable Future

Slide 18: Energized Leadership Team Focused on Execution and Accountability

Slide 19: Experienced and Diversified Board of Directors

Slide 20: Clear Path to Achieving FY'27 Targets

Slide 21: Providing Energy Systems to Critical Industries

Slide 22: Key Messages | Energy Systems

Slide 23: Energy Systems at a Glance

Slide 24: Multiple, Critical Energy Systems Touch Points

Slide 25: Accelerating Innovative Energy Solutions

Slide 26: Integrated and Modular Solutions

Slide 27: Well-Positioned to Grow in Attractive Addressable Market

Slide 28: How We Win

Slide 29: Executing Clear Solutions Strategy

Slide 30: Local Capabilities and Global Portfolio

Slide 31: Providing HyperBoost 5G Macro Cells to Communication Networks

Slide 32: XRT Extended Run Time Power Systems | CPUC Mandate

Slide 33: XRT Extended Run Time Power Systems

Slide 34: Summary of Energy Systems Opportunity

Slide 35: Enabling Electrification and Automation

Slide 36: Key Messages | Motive Power

Slide 37: Motive Power at a Glance

Slide 38: Well-Positioned to Grow at or Above Market

Slide 39: How We Win

Slide 40: Executing Clear Solutions Strategy

Slide 41: Diverse Chemistries and Broad Technologies Provide Optionality

Slide 42: Enabling Customers to Meet Sustainability Goals through EnSite

Slide 43: Transitioning Distribution Centers to Maintenance-Free

Slide 44: Driving Efficiencies through E Connect Data Analytics

Slide 45: Summary of Motive Power Opportunity

Slide 46: Powering Applications with Innovative Solutions

Slide 47: Key Messages | Specialty

Slide 48: Specialty at a Glance

Slide 49: Driving Innovative Solutions

Slide 50: Positioned to Further Capture Share in Large and Attractive Markets

Slide 51: How We Win

Slide 52: Executing Clear Solutions Strategy

Slide 53: Co-Developing Systems with Global Truck OEMs

Slide 54: Expanding Distribution Capabilities

Slide 55: Quicker Integration and Winning Next Generation

Slide 56: Summary of Specialty Opportunity

Slide 57: Q&A

Slide 58: Break

Slide 59: Optimizing Operational Excellence

Slide 60: Key Messages

Slide 61: Executing Proven Playbook | Arras Site

Slide 62: Applying Arras Success to Springfield for Continued Capacity Improvement

Slide 63: Increasing Output through Automation

Slide 64: Summary of Operational Excellence Opportunity

Slide 65: Innovating Energy Solutions

Slide 66: Key Messages

Slide 67: Future Charging Infrastructure

Slide 68: Addressing Future Needs for Fast and Reliable EV Charging

Slide 69: Bringing Reliable Power to Customers

Slide 70: Powering the Future through Energy Management Capabilities

Slide 71: Accelerating Innovation with Fast Charge & Storage

Slide 72: Core Modular Platform | Energy Storage

Slide 73: Core Modular Platform | Power Electronics

Slide 74: Core Modular Platform | Software

Slide 75: Significant Opportunity in Attractive and Growing Market

Slide 76: Summary of Innovation Opportunity

Slide 77: Executing Clear Financial Priorities

Slide 78: Financial Outcomes | Key Messages

Slide 79: Historical Financial Performance