Enerpac Tool Group Corp. · NYSE:EPAC
Enerpac Tool — Baird Global Industrial Conference 2021
20 slides from Enerpac Tool's conference presentation, Nov 9, 2021
Slide 1: Baird Global Industrial Conference, November 2021
Baird Global Industrial Conference, November 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not historical are considered “forward-looking statements” and are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. Those factors are contained in
Slide 3: Paul Sternlieb, President & CEO – Bio
Paul Sternlieb, President & CEO – Bio ▪ Joins Enerpac Tool Group from John Bean Technologies (JBT) where he held the role of Executive Vice President & President, Protein ▪ Has held various roles at other leading organizations including the following: ▪ Illinois Tool Works, Group President, Global C
Slide 4: Why Enerpac Tool Group?
Why Enerpac Tool Group? ▪ Great products, services, and team ▪ Strong market position, global breadth and depth ▪ Heavy lifting of portfolio work is done, and Enerpac is now a pure-play industrial tools and services company ▪ Many business processes improved (NPD, marketing, digital, operations) ▪ S
Slide 5: Initial Observations and Key Objectives
Initial Observations and Key Objectives Focus and Discipline ▪ Continue and accelerate our pure-play industrial tools strategy ▪ Capture organic opportunities for improvements in base business (both growth and margin) ▪ Look selectively at inorganic opportunities to complement our product and servic
Slide 6: Great Products, Services, Brands, and Team
Great Products, Services, Brands, and Team Global leader in high 110 Menomonee Falls, WI ~2,100 100+ 100+ precision tools, controlled YEARS OF HEADQUARTERS EMPLOYEES MANAGEMENT TEAM # OF COUNTRIES force products, and solutions for precise heavy HISTORY YEARS EXPERIENCE PRODUCTS SOLD INTO lifting Pro
Slide 7: Wide Array of Durable and Reliable Products
Wide Array of Durable and Reliable Products Heavy Lift Bolting Cylinders Presses Pumps Work Holding Pullers Spreaders Cutters 7
Slide 8: Global Breadth of Business
Global Breadth of Business Enerpac Tools and Services benefit from having a diverse geographic customer base 36% Geographic diversification of sales United States Australia reduces overall 5% exposure to regional Mexico/Canada economic downturns 5% Sales of Opportunities for South America 3% $529m i
Slide 9: Extensive Global Distribution
Extensive Global Distribution Global distribution network is a competitive advantage • Most robust distribution 1,500+ 3,500+ 100+ network in the competitive space distributors points of sale countries • Application experts with hands-on product demonstrations • Local access to world- class tools qu
Slide 10: Digital Marketing Strategy
Digital Marketing Strategy ▪ Digital marketing channels are utilized to drive awareness, demand and sales for Enerpac products ▪ Leveraging digital channels to generate awareness ensures Enerpac is easily found and is top-of- mind among industrial professionals ▪ Easy to use digital assets simplify
Slide 11: Growth Opportunities in Broad Vertical Markets
Growth Opportunities in Broad Vertical Markets 13 VERTICAL END MARKETS Large, fragmented vertical Power Gen/ Civil Construction Wind markets provide growth opportunities, both organic Oil & Gas Off-Highway and inorganic Vehicle Repair Industrial MRO On-Highway Vehicle Repair Manufacturing and Machin
Slide 12: Select Vertical Market Opportunities
Select Vertical Market Opportunities Infrastructure – Where We Participate ▪ Roads and Bridges ▪ Rail ▪ Commercial Construction ▪ Electrical Distribution ▪ Water ▪ Airports ▪ Port Facilities Premium Product Offering ▪ Known for precision, durability, and safety ▪ Strong brand recognition within lift
Slide 13: Driving Organic Growth: New Product Development
Driving Organic Growth: New Product Development NEW PRODUCT DEVELOPMENT KEY OBJECTIVES OF ENERPAC NPD ▪ Focusing on innovation through Centers ▪ Create value for end users by simplifying of Excellence (CoE) and Vertical Market the “job to be done,” leveraging deep teams VOC insight ▪ Bringing new pr
Slide 14: Enabling Technology
Enabling Technology Enerpac ConnectTM - Launching Soon • SmartID tags and Connect app are foundations for the future of Smart Tools, IoT data, and closer ‘connection’ with our customers • Ultimately, opportunities to drive growth in digital future • Initial foundation built, with additional features
Slide 15: Selective, Disciplined M&A
Selective, Disciplined M&A Investing in strategic acquisitions through a disciplined process to capture new growth opportunities DISCIPLINED DRIVING GROWTH STRONG STRATEGY THROUGH M&A BALANCE SHEET ▪ Commitment to pure-play ▪ Goal is to become larger, ▪ Will maintain strong industrial tools and serv
Slide 16: Strong Balance Sheet
Strong Balance Sheet (US$ in millions) $35 $255 $152 1.8 $27 $195 $175 $140 1.1 $136 $10 0.6 Q4 2020 Q3 2021 Q4 2021 Q4 2020 Q3 2021 Q4 2021 Q4 2020 Q3 2021 Q4 2021 Q4 2020 Q3 2021 Q4 2021 Free Cash Flow Cash Balance Gross Debt TTM Financial Leverage* Free Cash Flow (FCF) Debt & Leverage • Free cash
Slide 17: Long-Term Sustainable Returns
Return on Invested Capital – Deploying Capital to Create Long-Term Sustainable Returns Goal of enhancing Enerpac’s position as a premier industrial tools and services company and its commitment to sustainable shareholder value Invest in Ourselves to Disciplined M&A within creation Drive Organic Grow
Slide 18: Significant Opportunities for Value Creation
Significant Opportunities for Value Creation Strong Business Model built on well recognized brands, robust global distribution, and broad reach of end markets Pure-Play Industrial Tools Strategy to drive core growth above market and expand BEST IN margins CLASS RETURNS Disciplined Capital Deployment
Slide 19: Appendix
Appendix
Slide 20: Board Considerations in Selection of New CEO
Board Considerations in Selection of New CEO ▪ Track record and experience driving growth in sales and margins and effectively allocating capital ▪ International experience at large, well run global industrial and manufacturing organizations ▪ Development and implementation of global operating strat
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