Enerpac Tool Group Corp. · NYSE:EPAC

Enerpac Tool — Q4 2024 Earnings Presentation

23 slides from Enerpac Tool's earnings presentation, Oct 16, 2024

  1. Slide 1: Q4 FY2024 Earnings

    Q4 FY2024 Earnings October 16, 2024 1

  2. Slide 2: Forward-Looking Statements and Non-GAAP Measures

    Forward-Looking Statements and Non-GAAP Measures Statements made in this presentation that are not historical are forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. In addition to statements with respect to guidance, the terms “outlook

  3. Slide 3: Growth & Margin Expansion in Challenging Macro Environment

    Growth & Margin Expansion in Challenging Macro Environment ($ in millions) Fiscal 2023 Fiscal 2024 YoY Actual Results Actual Results Change Organic Growth* 7.8% 2.2% Adjusted EBITDA** $136 $147 8.2% Adjusted EBITDA Margin 22.8% 25.0% +220 bps *Organic growth represents organic revenue growth excludi

  4. Slide 4: Fiscal 2024 Results

    Fiscal 2024 Results ($ in millions) Net Sales Net Sales Organic FY23 FY24 Change Growth* Industrial Tools & Service (IT&S) $555 $571 2.9% +2.7% IT&S Product $448 $456 1.8% +1.7% IT&S Service $108 $116 7.4% +6.6% Other ** $43 $18 -57.3% -9.5% Enerpac Tool Group $598 $590 -1.5% +2.2% *Organic net sale

  5. Slide 5: Continued Operational and SG&A Efficiency Gains

    Continued Operational and SG&A Efficiency Gains Gross Profit Margin SG&A % Adjusted SG&A %* 35.5% 51.1% 49.3% 29.8% 28.2% 27.6% FY23 FY24 FY23 FY24 FY23 FY24 *Adjusted SG&A expense is a non-GAAP measure and excludes restructuring and other charges identified in the accompanying reconciliations to GA

  6. Slide 6: Another Year of Profit Growth & Margin Expansion

    Another Year of Profit Growth & Margin Expansion ($ in millions, except per share) Adjusted EBITDA* $147 Adjusted EBITDA Margin* $136 25.0% 22.8% FY23 FY24 FY23 FY24 Adjusted EPS* $1.72 Free Cash Flow* $69 $70 $1.45 FY23 FY24 FY23 FY24 *Adjusted EBITDA, adjusted EPS, and adjusted EBITDA margin are n

  7. Slide 7: Significant Profit Expansion Through ASCEND

    Significant Profit Expansion Through ASCEND ($ in millions) Net Sales* Adjusted EBITDA and Margin (%)* $147 $650 30.0% $598 $136 $590 $140 $600 $571 25.0% +8% $120 Organic +2% 25.0% $550 $529 +11% Organic $100 Organic 22.8% $83 20.0% $500 +5% $80 $75 Organic $60 15.0% $450 14.5% 14.1% $40 $400 10.0%

  8. Slide 8: 4Q24 Results

    4Q24 Results ($ in millions, except EPS) YoY 4Q23 4Q24 Change Net Sales $161 $159 -1% * Organic Growth 8.8% 0.9% IT&S Organic Growth 8.4% 0.8% IT&S Product Organic Growth 13.8% -1.0% IT&S Service Organic Growth -11.8% 9.7% Gross Margin 49.1% 48.8% -30 bps Adjusted SG&A ** 26.0% 26.0% flat ** Adjuste

  9. Slide 9: Strong Liquidity & Balanced Capital Allocation Strategy

    Strong Liquidity & Balanced Capital Balance Sheet Allocation Strategy ($ in millions) Cash & Equivalents $167 Revolver Capacity (Undrawn) $398 Total Liquidity $565 Total Debt $195 Invest in Ourselves Disciplined M&A Net Debt/Adj. EBITDA* 0.2 Investments in Digital, Product Innovation, R&D, Operation

  10. Slide 10: FY25 Guidance

    NET SALES FY25 Guidance $610 - $625M ~0-2% Organic Growth ~3-6% Total Growth Key Assumptions: ▪ Targeting to outperform industry and gain market share ADJ. EBITDA* ▪ No broad-based global recession Depreciation & Amortization ~$14 - $16M $150 - $160M Interest Expense ~$13 - $15M Adjusted Tax Rate ~2

  11. Slide 11: PEP: Transition to Continuous Improvement

    PEP: Transition to Continuous Improvement Strategic Efforts Focus Areas Accelerating Growth Execution and monitoring of growth strategy Continuous improvement projects in Optimizing Operations manufacturing and procurement Continuing to streamline SG&A through greater Minimizing Inefficiencies effic

  12. Slide 12: IT&S Organic Growth by Region

    IT&S Organic Growth by Region * FY24 IT&S Regional Sales APAC 13% Americas 46% EMEA 41% *Organic net sales is a non-GAAP measure and excludes the impact of foreign exchange rates, acquisitions, and dispositions. 12

  13. Slide 13: Growing in our Key Vertical Markets through Leading Trade Shows

    Growing in our Key Vertical Markets through Leading Trade Shows ▪ Exhibited a variety of standard industrial tool and new product ▪ Exhibited the RP70 Rail ▪ SC & XC2 Cordless Stressing Kit and TL248 Battery Pumps Track Lift System ▪ BTW Battery Torque ▪ Generated numerous Wrench leads, including re

  14. Slide 14: Target End Markets: Wind

    Target End Markets: Wind ▪ Showcased line of recently launched battery-powered industrial tools ▪ BTW Battery Torque Wrench ▪ SC/XC2 Battery-Powered Pumps ▪ Generated new leads for Wind Vertical 14

  15. Slide 15: Executive Appointments

    Executive Appointments Eric Chack Darren Kozik EVP – Operations EVP – Chief Financial Officer Experience: Experience: • Strategic operations leadership, • Leadership of global corporate finance, including manufacturing excellence FP&A, M&A, Treasury, Procurement, and and supply chain efficiency Inve

  16. Slide 16: DTA Acquisition

    DTA Acquisition Combination of Enerpac’s vertical Strategic Fit: lift and DTA’s horizontal movement provides comprehensive customer solutions Tap Enerpac’s global sales and Revenue Synergies: strong distribution channel to expand beyond Europe Implement Enerpac’s disciplined Operating / operating pr

  17. Slide 17: Appendix

    Appendix ENERPAC .@) TOOL GROUP

  18. Slide 18: IT&S Organic Growth by Region

    IT&S Organic Growth by Region Regional IT&S Organic Growth by Region Fiscal Fiscal 1Q23 2Q23 3Q23 4Q23 2023 1Q24 2Q24 3Q24 4Q24 2024 Americas +HT +LDD +MSD +HSD +LDD +MSD +LSD -LSD Flat +LSD EMEA +HSD +MSD Flat +MSD +MSD +HSD +MSD +LDD +LSD +HSD APAC +LSD +MSD +HT +HT +LDD +LSD -LSD -LDD -MSD -MSD L

  19. Slide 19: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures (US$ in millions) Consolidated Organic Growth IT&S Organic Growth IT&S Product Organic Growth IT&S Service Organic Growth ETG Organic Sales - YTD FY24 vs. YTD FY23 IT&S Organic Sales - YTD FY24 vs. YTD FY23 IT&S Organic Product Sales - YTD FY24 vs. YTD FY23 IT&S O

  20. Slide 20: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures (US$ in millions) Consolidated Organic Growth IT&S Organic Growth IT&S Product Organic Growth IT&S Service Organic Growth ETG Organic Sales - Q4 FY24 vs. Q4 FY23 IT&S Organic Sales - Q4 FY24 vs. Q4 FY23 IT&S Organic Product Sales - Q4 FY24 vs. Q4 FY23 IT&S Organic

  21. Slide 21: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures (US$ in millions, except per share) Net Sales Adjusted Diluted Earnings per share from Continuing Operations FY2023 FY2024 FY2023 FY2024 Enerpac Tool Group $ 598 $ 590 Net Earnings $ 0.82 $ 1.56 Earnings (loss) from Discontinued Operations, net of income tax (0.12

  22. Slide 22: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures (US$ in millions, except per share) Net Sales Adjusted Diluted Earnings per share from Continuing Operations Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Enerpac Tool Group $ 161 $ 159 Net Earnings $ 0.40 $ 0.44 Earnings (loss) from Discontinued Operations, net of income tax (

  23. Slide 23: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures Free Cash Flow Free Cash Flow Q4 FY23 Q4 FY24 FY2023 FY2024 Cash provided by (used in) operating activities 51 44 Cash provided by (used in) operating activities 78 81 Capital expenditures (1) (6) Capital expenditures (9) (11) Free Cash Flow 50 38 Free Cash Flow 6

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