EnerSys · NYSE:ENS
EnerSys — Investor Presentation (June 2022)
31 slides from EnerSys's investor presentation, June 2022
Slide 1: Investor Presentation
Investor Presentation JUNE 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: Key Takeaways
Key Takeaways We are a global Industrial Technology company delivering highly ✓ differentiated Energy Solutions to Diverse End Markets ✓ Our Proprietary Technologies and Services play a critical role in the energy transition fueled by Megatrends ✓ Our Resilient Business Model positions us well to Ca
Slide 4: 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 $4.471 ~11.4k1 10k+1 22%1 Sales Adj. Operating Margin Adj. Diluted EPS Total Employees Customers Market Share2 FY’22 SALES BY GEOGRAPHY GLOBAL CUSTOMER BASE3 Asia 7% EMEA 24% Americ
Slide 5: Technology Driven Portfolio Transformation
Technology Driven Portfolio Transformation 2010 2022 ▪ Traditional lead acid ▪ Integrated technology Growth Opportunities battery company solutions across energy ▪ Expand capacity for storage, power & premium products electronics, and software ▪ Grow Motive Power ▪ Narrow set of end markets & servic
Slide 6: Leveraging Our Platforms Across All Segments
Leveraging Our Platforms Across All Segments 3 Core Technology Platforms 3 Business Segments 8 End Markets Telecom Networks Energy Systems Broadband Cable Power & Industrial Power and Utilities Electronics Renewable Energy Energy Storage Motive Power Premium (Flooded, TPPL, Data Centers Lithium-ion)
Slide 7: Technology Agnostic To Meet Customer Needs
Technology Agnostic To Meet Customer Needs Lithium-ion ▪ Edge computing, efficient data collection to the cloud ▪ Maintenance-free, longer cycle life, fastest charge rate ▪ Asset management software ▪ Patented safety technology ▪ App support to monitor health of assets Software ▪ Ideal for use cases
Slide 8: Examples of New Technology Advancements
Examples of New Technology Advancements POWERING THE FUTURE, EVERYWHERE FOR EVERYONE Fast Charge and Storage Combines solar energy, energy storage, backup power and NexSys® TPPL and Li-Ion options EV charging capabilities TouchSafe CPUC Collaboration with Corning TPPL and Li-Ion options June 2022 ©
Slide 9: Business Segment Overview
Business Segment Overview FISCAL YEAR 2022 Net Sales Adj. Op Margin Segment Overview ($ millions) • $740M record backlog Energy Systems $1,537 3.1% • Pricing actions gained traction in Q4’22 +11% y/y -360 bps y/y • Infrastructure spending / network upgrades fueling growth • Fast Charge and Storage o
Slide 10: Our Inaugural Sustainability Report
Our Inaugural Sustainability Report OUR SUSTAINABILITY OUR POWER SOLUTIONS ENABLE THE TRANSITION TO A LOW CARBON ECONOMY JOURNEY • Sustainability update detailing our Energy Storage Motive Power Specialty key initiatives published August 2021 Developing reliable, Providing innovative, low Engineerin
Slide 11: Financial Update
Financial Update June2022 May 2022 © 2022 EnerSys. All Rights Reserved.
Slide 12: Q4'22 & FY'22 Results
Q4’22 & FY'22 Results Q4’22 FY’22 Key Takeaways ($ 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 $1.3B on robust market demand across all business segments Adj. Operating • Q4’22 price outpaced cost, driving seq
Slide 13: Record Backlog Drives Long-Term Growth
Record Backlog Drives Long-Term Growth ORDER GROWTH & MACRO CONDITIONS DRIVING RECORD BACKLOG ($ 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 14: Price Recapture Gaining Traction
Price Recapture Gaining Traction Price Recapture (q/q, $ millions) Price Recapture (y/y, $ millions) 90 $160 45 $80 0 $- -45 ($80) Ongoing price Further price -90 recapture initiatives ($160) recapture anticipated Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 anticipated to push FY'21 FY'22 in FY’
Slide 15: 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. 15
Slide 16: 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 17: Focusing on What We Can Control
Focusing on What We Can Control 1. Pricing – continue to execute pricing increases commensurate with cost increases 2. Redesign – redesign products for component supply constraints (e.g., chips) 3. Operating Efficiencies – reduce costs through EOS 4. Profitable Growth – retain leading market positio
Slide 18: 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 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: Q4'22 & FY'22 Results
Q4’22 & FY’22 Results Net Sales Adj Operating Income & Margin $907 $3.4 $78 $284 $844 $67 $264 $60 $814 $3.0 $ millions $ millions $ billions $ millions 9.6% 9.5% 7.2% 7.4% 7.9% Q4'21 Q3'22 Q4'22 FY'21 FY'22 Q4'21 Q3'22 Q4'22 FY'21 FY'22 Adj EBITDA & Margin Adj Diluted EPS $345 $340 $1.30 $1.20 $97
Slide 22: Q4'22 Segment Financial Highlights
Q4’22 Segment Financial Highlights Sales Segment Adj Segment Highlights ($ millions; % y/y Growth) Operating Margin Volume +13% Price/Mix +6% • Record backlog +131% y/y, +142% vs FY’20 Energy 3.9% $410 FX (2%) • Second quarterly progress on net price / mix Systems ----------------------- +130 bps y/
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation June 2022 © 2022 EnerSys. All Rights Reserved. 23
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation June 2022 © 2022 EnerSys. All Rights Reserved. 24
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation June 2022 © 2022 EnerSys. All Rights Reserved. 25
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation June 2022 © 2022 EnerSys. All Rights Reserved. 26
Slide 27: 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. 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: 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 31: 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