Slide 1: Q4'24 & FY'24 Earnings
Q4’24 & FY’24 Earnings M AY 2 2 , 2 0 2 4 May 2024 © 2024 EnerSys. All Rights Reserved. 1
Slide 2: Forward Looking Statements
Forward Looking Statements As a reminder, we will be presenting certain forward-looking statements on this call 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 actual re
Slide 3: Q4'24 & FY'24 Overview
Q4’24 & FY’24 Overview D AV E S H A F F E R PRESIDENT AND CEO May 2024 © 2024 EnerSys. All Rights Reserved.
Slide 4: 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 +$180M Y/Y Adj Gross Margin1 of 28.0% in Q4 & FY’24 up 310
Slide 5: Q4'24 Executing on our Strategy
Q4’24 Executing on our Strategy Increasing Higher Value Solutions • MP Next Gen charger offers advanced features: over air updates, energy management, and high energy efficiency - in customer demo phase • MP Wireless Charger received UL 1564 certification Innovate • ES PowerSafe® SBS XL 2V battery a
Slide 6: Bren-Tronics Acquisition
Bren-Tronics Acquisition E X PA N D S P R E S E N C E I N C R I T I C A L D E F E N S E A P P L I C AT I O N S HIGHLIGHTS • Legacy of innovation since 1973 and strong relationship with DOD • Highly complementary portfolio of products for military and defense • Strong engineering and product developm
Slide 7: 2023 Sustainability Report Published
2023 Sustainability Report Published • Key highlights from 2023 report: ‒ Scope 1 GHG emissions down 4% since 2022, and down 25% since 2019 ‒ 15% reduction in energy intensity since 2020 ‒ 6% reduction in water usage intensity since 2020 ‒ Publication of 2023 Scope 3 GHG data ‒ Appendix aligned with
Slide 8: Q4'24 & FY'24 Financial Results, Q1'25 & FY'25 Outlook
Q4’24 & FY’24 Financial Results ANDI FUNK Q1’25 & FY’25 Outlook EVP AND CFO May 2024 © 2024 EnerSys. All Rights Reserved.
Slide 9: Q4'24 and FY'24 Results
Q4’24 and FY'24 Results ($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 10: 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 11: 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 $M
Slide 12: Energy Systems Segment Highlights
Energy Systems Segment Highlights Q4’24 ($M) Y/Y change Net Sales $369 (19%) Adj Op Earnings1 $17.4 (41%) Adj OE Margin1 4.7% (180 bps) • Net Sales (19%) Y/Y ‒ (19%) volume primarily due to continued U.S. Communication Networks CapEx pause ‒ +2% price / mix offsetting (2%) FX ‒ Data center sales up
Slide 13: Motive Power Segment Highlights
Motive Power Segment Highlights Q4’24 ($M) Y/Y change Net Sales $395 +3% Adj Op Earnings1 $58.1 +15% Adj OE Margin1 14.7% +160 bps • Net Sales +3% Y/Y ‒ +5% volume, +1% acquisition ‒ (2%) price/mix due to elimination of utility adder and (1%) FX ‒ Maintenance-free products increased to a record 25.0
Slide 14: Specialty Segment Highlights
Specialty Segment Highlights Q4’24 ($M) Y/Y change Net Sales $147 (1%) Adj Op Earnings1 $8.5 (13%) Adj OE Margin1 5.8% (80 bps) • Net Sales (1%) Y/Y ‒ Flat volume ‒ (1%) price/mix and flat FX ‒ Transportation demand paced by capacity constraints • Adj Op Earnings1 ($1M) but improved Q/Q ‒ Continued
Slide 15: Balance Sheet, Cash Flow and Leverage
Balance Sheet, Cash Flow and Leverage S E L E C T E D B AL AN C E S H E E T M E T R I C S 1 S E L E C T E D C AS H F L O W M E T R I C S 2 ($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 16: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy Priorities Q4’24 Future Priorities • Continue TPPL capacity investments & end-to-end solutions Invest in Organic Growth (CapEx) $27M • Optimize EOS to drive additional operational efficiencies • Accelerate domestic-sourced lithium strategy Announced Bren-Troni
Slide 17: 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 18: 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 19: Q&A
Q&A May 2024 © 2024 EnerSys. All Rights Reserved.
Slide 20: Appendix
Appendix May 2024 © 2024 EnerSys. All Rights Reserved.
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations May 2024 © 2024 EnerSys. All Rights Reserved.
Slide 22: Non-GAAP Reconciliation: Quarterly Adjusted Operating Earnings
Non-GAAP Reconciliation Q 4 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 May 2024 © 2024 EnerSys. All Rights Reserved. 22
Slide 23: Non-GAAP Reconciliation: FY Adjusted Operating Earnings
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 May 2024 © 2024 EnerSys. All Rights Reserved. 23
Slide 24: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation ADJUSTED EBITDA May 2024 © 2024 EnerSys. All Rights Reserved. 24
Slide 25: Non-GAAP Reconciliation: Q4 FY'24 Adjusted Diluted EPS
Non-GAAP Reconciliation Q4 FY’24 ADJUSTED DILUTED EPS May 2024 © 2024 EnerSys. All Rights Reserved. 25
Slide 26: Non-GAAP Reconciliation: FY'24 Adjusted Diluted EPS
Non-GAAP Reconciliation FY’24 ADJUSTED DILUTED EPS May 2024 © 2024 EnerSys. All Rights Reserved. 26
Slide 27: Non-GAAP Reconciliation: Leverage Ratio by Year
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, $22.4 million of restruct
Slide 28: Non-GAAP Reconciliation: Leverage Ratio by Quarter
Non-GAAP Reconciliation L E V E R A G E R AT I O B Y Q U A R T E R Last twelve months ended March 31, December 31, October 1, July 2, March 31, January 1, October 2, July 3, ($ 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 29: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation FREE CASH FLOW May 2024 © 2024 EnerSys. All Rights Reserved. 29
Slide 30: Non-GAAP Reconciliation: Adjusted Gross Profit and Gross Margin
Non-GAAP Reconciliation ADJUSTED GROSS PROFIT AND GROSS MARGIN May 2024 © 2024 EnerSys. All Rights Reserved. 30
Slide 31: Key Performance Indicator: Primary Operating Capital
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 32: Thank you.
Thank you. For more information visit us at www.enersys.com World 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 +1 610-208-1991 / +1 800-538-3627 6300 Zug Switzerland Singapore 189721 / +6