EnerSys · NYSE:ENS
EnerSys — ESG Presentation (June 2022)
36 slides from EnerSys's sustainability presentation, Jun 24, 2022
Slide 1: Strategy and ESG Update
Strategy and ESG Update JUNE 24, 2022 June 2022 © 2022 EnerSys. All Rights Reserved.
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: EnerSys At A Glance (NYSE: ENS)
EnerSys At A Glance (NYSE: ENS) L EAD IN G PR O VID ER O F D IF F ER EN T IAT ED EN ER G Y SO L U T IONS $3.4bn1 7.9%1 $4.471 ~11.4k1 10k+1 22%1 Sales Adj. Operating Margin Adj. Diluted EPS Total Employees Customers Market Share2 FY’22 SALES BY GEOGRAPHY GLOBAL CUSTOMER BASE3 Asia 7% EMEA 24% Americ
Slide 4: Technology Driven Portfolio Transformation
Technology Driven Portfolio Transformation 2010 2022 • Traditional lead acid battery • Integrated technology Growth Opportunities company solutions across energy • Expand capacity for storage, power electronics, premium products and software & services • Grow Motive Power • Narrow set of end markets
Slide 5: Leveraging Our Platforms Across All Segments
Leveraging Our Platforms Across All Segments 3 Core Technology Platforms 3 Business Segments 8 End Markets Telecom Networks Energy Systems Broadband Cable Power Industrial Power and Utilities Electronics Energy Renewable Energy Storage Motive Power Premium (Flooded, TPPL, Data Centers Lithium-ion) E
Slide 6: Disciplined & Balanced Capital Allocation
Disciplined & Balanced Capital Allocation Capital Allocation FY’18 – FY’22 FY’22 Healthy Balance Sheet (cumulative) Priorities $ millions $ millions • 2 – 3x target leverage Invest in Organic 1 Growth ~$390 ~$75 • ~$400M cash and cash equivalents (Capex) ‒ Strong cash generation outpaced by strategi
Slide 7: Our Sustainability Journey
Our Sustainability Journey July 2021 December 2H 2020 Launched 2021 April 2022 2025 Established full-time inaugural Published Published inaugural GRI Deadline for 2021 diversity Sustainability Team; joined diversity supplemental and SASB-aligned and employer recognition external sustainability engag
Slide 8: Our Sustainability Strategy
Our Sustainability Strategy Our Progress to Date Future Aspirations 1 ■ Began tracking energy usage and Scope 1 & 2 emissions, began initial steps to quantify ■ Targeting 25% reduction in energy intensity by 2030 (vs. 2020) scope 3 emissions ENVIRONMENTAL ■ Targeting 25% reduction in water intensity
Slide 9: Environmental Stewardship
1 Environmental Stewardship COMMITTED TO ACTING AS A RESPONSIBLE INDUSTRY LEADER Topic Our Practices / Commitments 2021 Highlights External Initiatives ■ Aim to reduce direct / indirect emissions by ■ Began tracking and reporting our energy usage and Scope increasing operational efficiency and explo
Slide 10: Our People and Community
2 Our People and Community OUR COMMITMENT TO OUR PEOPLE Topic Our Practices / Commitments 2021 Highlights ■ Undertake efforts to monitor and reduce acute and chronic exposures WORKFORCE in the workplace ■ Decreased our days-away cases and have had no fatalities at our facilities for the HEALTH AND f
Slide 11: Sustainability Governance
3 Sustainability Governance W E TA K E O U R R E S P O N S I B I L I T Y A S A C O R P O R AT E C I T I Z E N S E R I O U S LY ESG OVERSIGHT AT ENERSYS SUPPLY CHAIN MANAGEMENT ■ Formal Workforce Labor Rights Policy and Corporate Social Responsibility and Human Rights Policy in place BOARD OF DIRECTO
Slide 12: Sustainability of Products and Services
4 Sustainability of Products and Services OUR POWER SOLUTIONS ENABLE THE TRANSITION TO A LOW CARBON ECONOM Y SUSTAINABILITY IN OUR CORE BUSINESSES PRODUCT AND SERVICE APPLICATIONS ACROSS THE INDUSTRIES WE SERVE Energy Systems Aerospace & Specialty Cable Broadband Communication Networks Data Centers
Slide 13: Corporate Governance
Corporate Governance O U R R E P U TAT I O N F O R B U I L D I N G R E L I A B L E P R O D U C T S A N D S O L U T I O N S I S R O O T E D I N O U R S T R O N G C O R P O R AT E G O V E R N A N C E BOARD BOARD BOARD STOCK OWNERSHIP / INDEPENDENCE PRACTICES ACCOUNTABILITY COMPENSATION ■ Independent B
Slide 14: Board of Directors
Board of Directors E X P E R I E N C E D L E A D E R S F R O M A R A N G E O F R E L E VA N T B A C K G R O U N D S Arthur Katsaros* David Shaffer Caroline Chan Former Group Vice President Vice President and General Manager President and CEO, (Development and Technology), (Network Business Incubator
Slide 15: Board Commitment to Diversity
Board Commitment to Diversity O U R B O A R D P R I O R I T I Z E S A N D VA L U E S D I V E R S I T Y AGE1 TENURE1 GENDER / RACE / ETHNICITY1 60-70 < 6 Years <60 6 –10 Years Years Old 20% Years Old 40% 45% 33% 22% of Directors are Female and/or Ethnically Diverse >70 > 10 Years Years Old 40% 22% 1.
Slide 16: Board Evaluation and Refreshment
Board Evaluation and Refreshment C O M M I T M E N T T O R E G U L A R R E F R E S H M E N T T O E V O LV E O U R B O A R D PROCESS OVERVIEW ■ Robust Board evaluation and refreshment process in place ■ Regularly evaluate mix of Board attributes, skills and experiences in the context of our strategy
Slide 17: Board Committees and Risk Oversight
Board Committees and Risk Oversight OUR APPROACH TO COMMITTEE COMPOSITION AND RESPONSIBILITIES BOARD ROLE IN RISK OVERSIGHT ■ Receives regular reports from management’s risk committee on any identified materials risks and reviews and AUDIT COMMITTEE ■ Full Board oversees various risks discusses poli
Slide 18: Executive Compensation Philosophy and Design
Executive Compensation Philosophy and Design C O M M I T T E D T O A L I G N I N G O U R C O M P E N S AT I O N W I T H S T O C K H O L D E R I N T E R E S T S INCENTIVES ALIGNED WITH BUSINESS GOALS FY 2022 TARGET COMPENSATION MIX Type of Pay Goals Metrics CEO 60% 20% Expense Control Operating Free
Slide 19: Compelling EnerSys Investment Case
Compelling EnerSys Investment Case BUILDING BLOCKS FOR CONTINUED SUCCESS 1 Provider of highly differentiated energy solutions 2 Full suite of technologies for a diverse set of end markets 3 Strategically aligned to large and growing markets fueled by industry megatrends 4 Healthy balance sheet with
Slide 20: Appendix
Appendix June 2022 © 2022 EnerSys. All Rights Reserved.
Slide 21: Our Sustainability Priorities
Our Sustainability Priorities W E H A V E C O N D U C T E D A M AT E R I A L I T Y A S S E S S M E N T T O C O N F I R M N I N E K E Y T O P I C S T H AT C U R R E N T LY C O N S T I T U T E T H E H I G H E S T S U S TA I N A B I L I T Y P R I O R I T I E S F O R O U R B U S I N E S S 1 2 3 Climate
Slide 22: 2021 Sustainability Goals
2021 Sustainability Goals GOALS / TARGETS INFORMED BY MATERIALITY ASSESSMENT COMMITTED TO SETTING ADDITIONAL GOALS IN 2022 Energy Intensity Climate • Reduce energy intensity per kWh of storage • We are working to establish a robust, ambitious produced by 25% by 2030 and measurable climate goal align
Slide 23: Business Segment Overview
Business Segment Overview FISCAL YEAR 2022 Net Sales Adj. Op Margin Segment Overview ($ millions) • $740M record backlog Energy Systems $1,537 3.1% • Pricing actions gained traction in Q4’22 +11% y/y -360 bps y/y • Infrastructure spending / network upgrades fueling growth • Fast Charge and Storage o
Slide 24: Foundation for a Strong Financial Future
Foundation for a Strong Financial Future FY’23 Guidance Q1’23 Adj EPS $1.10 - $1.20 FY’23 Capex ~$100M Strat Plan ~ Value Strat Plan Priorities FY’22 Tracking Pillars Markets: • ES 5G ✓ 8% CAGR FY’26 vs FY’20 • Megatrends further fueling markets Strat Plan: Revenue $100M AOE • MP Maint Free • Trans
Slide 25: Q4'22 & FY'22 Results
Q4’22 & FY'22 Results Q4’22 FY’22 Key Takeaways ($ millions, except EPS) • $907M record quarterly net sales +11.5% y/y Revenue $907 $3,357 (Y / Y Growth) +11.5% +12.7% • Backlog grew to $1.3B on robust market demand across all business segments Adj. Operating • Q4’22 price outpaced cost, driving seq
Slide 26: Record Backlog Drives Long-Term Growth
Record Backlog Drives Long-Term Growth ORDER GROWTH & MACRO CONDITIONS DRIVING RECORD BACKLOG ($ millions) $1,600 ~$1,350 $1,200 $800 ~$700 $400 $- Q4'21 Ending Program Wins Organic Volume Price Advance Ordering Supply Chain Delays Q4'22 Ending ▪ Continued backlog growth driven by strong demand acro
Slide 27: Adj EPS Bridge
Adj EPS Bridge Q4’22 SEQUENTIAL AND FULL YEAR Note: See appendix for non-GAAP reconciliation $M USD AA June 2022 © 2022 EnerSys. All Rights Reserved. 27
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation June 2022 © 2022 EnerSys. All Rights Reserved. 28
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation June 2022 © 2022 EnerSys. All Rights Reserved. 29
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation June 2022 © 2022 EnerSys. All Rights Reserved. 30
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation June 2022 © 2022 EnerSys. All Rights Reserved. 31
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation The following table provides the line of business allocation of the non-GAAP adjustments shown in the reconciliation above June 2022 © 2022 EnerSys. All Rights Reserved. 32
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation June 2022 © 2022 EnerSys. All Rights Reserved. 33
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation June 2022 © 2022 EnerSys. All Rights Reserved. 34
Slide 35: Adj EBITDA
Adj EBITDA $ Millions Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 FY'21 FY'22 Net Sales $ 813.5 $ 814.9 $ 791.4 $ 844.0 $ 907.0 $ 2,977.9 $ 3,357.3 $ Millions Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 FY'21 FY'22 Net Earnings $ 33.8 $ 43.9 $ 35.6 $ 36.3 $ 28.1 $ 143.3 $ 143.9 Depreciation 15.8 16.0 15.6 15.7 15.3 60.9 62.6 A
Slide 36: Thank you.
Thank you. For more information visit us at enersys.com EnerSys Global Headquarters EnerSys EMEA EnerSys APAC 2366 Bernville Road EH Europe GmbH 152 Beach Road Reading, PA 19605 | USA Baarerstrasse 18 Gateway East Building #11- 03 Tel. +1-610-208-1991 6300 Zug Singapore +1-800-538-3627 Switzerland 1