Worthington Enterprises, Inc. · NYSE:WOR
Worthington Enterprises — Investor Day (November 2021)
89 slides from Worthington Enterprises's investor day presentation, Nov 10, 2021
Slide 1: Investor & Analyst Day
Investor & Analyst Day November 10, 2021
Slide 2: Agenda
Agenda Slides Welcome / Safe Harbor 1-3 Worthington Overview & Strategy Andy Rose 4-14 Strategic Pillars - Value Drivers & Enablers Geoff Gilmore 15-23 Business Segment Review Consumer Products Steve Caravati 24-33 Building Products Eric Smolenski 34-50 WAVE Joint-Venture Doug Cadle 43-49 Sustainabl
Slide 3: Safe Harbor
Safe Harbor Worthington Industries wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995 (the “Act"). Statements by the Company which are not historical information constitute "forward looking statements" within the meaning of the Act
Slide 4: Worthington Overview & Strategy
Andy Rose Worthington Overview & Strategy 4
Slide 5: Vision
VISION TO BE THE TRANSFORMATIVE PARTNER For our CUSTOMERS, A POSITIVE FORCE in our COMMUNITIES AND EARN EXCEPTIONAL RETURNS y
Slide 6: $3.6 Billion Net Sales
NET SALES OF $3.6 BILLION TTM 08/31/21 8,000 5,100 53 7 $604M ADJ. EBITDA TTM 08/31/21 6
Slide 7: New Reporting Segments Announced Starting Fiscal 2022
NEW REPORTING SEGMENTS ANNOUNCED STARTING FISCAL 2022 Segments better align businesses around the attractive end-markets they serve and provide investors with greater insights into performance 7
Slide 8: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Worthington offers an attractive investment opportunity balancing growth and rewarding shareholders • Business segments aligned around diverse and attractive end-markets with market leading positions • Actively pursuing growth through innovation, transformation, and acquisi
Slide 9: $3.6 Billion of Sales
$3.6 BILLION OF SALES IN TRAILING TWELVE MONTH ENDED 08/31/21 Net Sales by End-Market Adjusted EBIT* by Segment $3.6 Billion $516.7 Million 15% 12% 5% 4% $301.7 13% $71.6 5% 9% $143.3 37% ($2.8) $3.0 Steel Consumer Products Automotive Construction Consumer Products Building Products Building Product
Slide 10: Successful History of Complementary Joint Ventures
SUCCESSFUL HISTORY OF COMPLEMENTARY Joint Ventures OVER Primarily serving the building products and automotive end markets $1.0B in dividends Business % owned Created Building Products received WAVE Architectural and acoustical grid ceilings 50% 1992 from JVs in past 10 years ClarkDietrich Metal fra
Slide 11: Growth Strategy
GROWTH STRATEGY • Working together using technology, analytics and automation enables us to deliver… • Successful innovation, transformation, and acquisitions that drive value for customers and earn exceptional returns for our shareholders. • All with Our Philosophy at the center. 11
Slide 12: Becoming a Global Leader in the Electrical Steel Lamination Market
Becoming A Global Leader in the Electrical Steel Lamination Market ✓ Worthington to become a global leader in the fast growing electrical steel lamination market that includes transformers, machine motors and electric vehicle motors. ✓ Announced agreement to acquire Tempel Steel on Nov.1, 2021 Acqui
Slide 13: Corporate Citizenship & Sustainability
Corporate Citizenship & Sustainability Long history of keeping employees safe, practicing good citizenship and protecting the environment For more details, please see our 2021 Citizenship & Sustainability Report 13 located on the “Sustainability Report” page of our website at: www.WorthingtonIndustr
Slide 14: Diversity, Equity & Inclusion
Diversity, Equity & Inclusion • Company has established a DEI Leadership Council • Efforts led by Director of DEI • Comprehensive DEI strategy focuses on four pillars: • Workforce • Workplace • Community • Partnerships • Raising awareness and providing mentorship opportunities with Employee Resource
Slide 15: Strategic Pillars - Value Drivers & Enablers
Geoff Gilmore Strategic Pillars - Value Drivers & Enablers 15
Slide 16: All Leaders Must Have a Credible Plan
ALL LEADERS MUST HAVE A CREDIBLE PLAN C L E A R S T R AT E G I C V I S I O N S P E C I F I C A R E A S O F F O C U S U T I L I Z I N G K E Y VA L U E D R I V E R S A S P I R AT I O N A L G O A L S A L I G N E D & C O M M U N I C AT E D A C C O U N TA B I L I T Y 16
Slide 17: Growth Strategy: Value Drivers & Enablers
GROWTH STRATEGY VALUE DRIVERS & ENABLERS • Working together using technology, analytics and automation enables us to deliver… • Successful innovation, transformation, and acquisitions that drive value for customers and earn exceptional returns for our shareholders. • All with Our Philosophy at the c
Slide 18: Complementary Value
COMPLEMENTARY VALUE TRANSFORMATION Broad based business system focused on: + Data-driven decision making * Optimizing value streams and eliminating waste * Discovering new capabilities through agile teams * One system, driven by everyone, not just a central tiger team r DRIVERS ARE WELL ESTABLISHED
Slide 19: Leveraging Transformation, Enablers Drive Sustained Improvements
LEVERAGING TRANSFORMATION, ENABLERS DRIVE SUSTAINED IMPROVEMENTS Analytics Information Technology Automation Advanced Technologies 19
Slide 20: Smart Factory Vision
SMART FACTORY VISION Connected, flexible, adaptive lean manufacturing system that can learn, self-optimize, and run autonomously freeing up our employee's time and empowering them to create more value for shareholders 20
Slide 21: Smart Factory Vision
Smart Factory Vision Situation: Inconsistent and disconnected systems used by operations and maintenance at facilities did not provide right information to make the right decisions at the right time What we did: • Established cross-functional agile team focused on Smart Factory vision • Implemented
Slide 22: Machine Sensoring and Analytics for Predictive Maintenance
Utilizing AVOIDED Machine Sensoring and Analytics $1 for Predictive Maintenance MILLION Situation: Despite regularly planned maintenance there can be unpredictable outages on machines that require costly unplanned down time and rework in potential lost earnings Vision: Improve overall plant reliabil
Slide 23: Automation and Robotics Solutions
Avoided Utilizing Manufacturing- Automation and $1 Robotics Solutions MILLION Situation: Fittings for cylinders at our Westerville, OH facility were being manually placed on in potential lost earnings each cylinder before being robotically welded into place What we did: • Evaluated process for furth
Slide 24: Consumer Products
Steve Caravati Consumer Products 24
Slide 25: Outdoor Living
CONSUMER PRODUCTS I SEGMENT OUTDOOR LIVING 25 25
Slide 26: Tools
CONSUMER PRODUCTS I SEGMENT TOOLS 26
Slide 27: Celebrations
CONSUMER PRODUCTS I SEGMENT CELEBRATIONS 27
Slide 28: Consumer Products: Market Leading Brands
CONSUMER PRODUCTS I MARKET LEADING BRANDS ($ Millions) Market leading brands sold primarily through big-box retailers Net Sales OUTDOOR LIVING TOOLS CELEBRATIONS $524 $449 $134 $148 Brands FY20 FY21 FY21 Q1 FY22 Q1 Products Adj. EBITDA $87.3 $76.1 $26.7 $23.8 Channel Partners FY20 FY21 FY21 Q1 FY22
Slide 29: Digital Fuel Gauge for portable cylinders
CONSUMER PRODUCTS I INNOVATION Digital Fuel Gauge for portable cylinders • Consumer need identified to know how much fuel was remaining in hand torch and camping gas cylinders • Concept designed and manufacturing outsourced to enable quick speed to market • Available at 24 retailers nationwide under
Slide 30: Consumer Products M&A Growth Strategy
CONSUMER PRODUCTS I M&A GROWTH STRATEGY OUTDOOR LIVING TOOLS WIN WITH CAMPERS FOCUS ON SPECIALIZED FUNCTIONS Leverage our camping gas to capture more shelf space in Acquire targets that are highly specialized in the camping aisle/section by acquiring strong brands with specific tools or trades and s
Slide 31: M&A – General Tools & Instruments
CONSUMER PRODUCTS I M&A – GENERAL TOOLS & INSTRUMENTS Acquired General Tools & Instruments in January 2021 expanding our reach in tools and outdoor living Market leader for feature-rich, specialized tools – Over 1,200 products Attractive financial returns • Expands product offering in niche tools an
Slide 32: Management & Capabilities Journey
CONSUMER PRODUCTS I MANAGEMENT & CAPABILITIES JOURNEY Capability Evolution Business Unit leadership CAPABILITY 5 YEARS AGO TODAY team with experience from Leadership team Internally-developed, Expanded leadership team implementing Blue-Chip Companies learn-as-we-grow. industry best practices. Catego
Slide 33: Consumer Products Sales History
CONSUMER PRODUCTS I SALES HISTORY Sales have grown significantly over the past decade due to both price and volume increases combined with M&A 10.0% CAGR $600 550 $524 500 2.6% CAGR $449 450 $409 $413 Revenue (millions) 400 $342 $356 $354 $359 350 $337 $315 300 250 200 150 100 50 $0 2012 2013 2014 2
Slide 34: Building Products
Eric Smolenski Building Products 34
Slide 35: Building Products Segment
BUILDING PRODUCTS I SEGMENT Broad array of market-leading commercial and residential building products primarily sold ($ Millions) through distributors. Equity earnings of WAVE and ClarkDietrich joint-ventures reported as part of Building Products EBIT. Net Sales FY21 Adj. EBITDA Products Net Sales
Slide 36: Market Leading JVs: WAVE and ClarkDietrich
BUILDING PRODUCTS I MARKET LEADING JVS WAVE ClarkDietrich Leader framing suspension ceiling systems Leader commercial steel framing • 50% owned joint-venture with 29-year operating history • 25% owned joint-venture formed in 2011 through the combination of two established market leaders - ClarkWeste
Slide 37: Delivering Essential Building Solutions to Create Better Spaces
BUILDING PRODUCTS I PORTFOLIO OF ESSENTIAL BUILDING SOLUTIONS Delivering Essential Building Solutions to Create Better Spaces Broad Array of Essential Building Solutions Market Leading Positions • Well-Know Brands Reputation for Innovation • Voice of customer • Labor savings • Technology 37
Slide 38: Delivering Essential Building Solutions to Create Better Spaces
BUILDING PRODUCTS I PORTFOLIO OF ESSENTIAL BUILDING SOLUTIONS Delivering Essential Building Solutions to Create Better Spaces Broad Array of Essential Building Solutions Market Leading Positions • Well-Know Brands Reputation for Innovation • Voice of customer • Labor savings • Technology 38
Slide 39: Delivering Essential Building Solutions to Create Better Spaces
BUILDING PRODUCTS I PORTFOLIO OF ESSENTIAL BUILDING SOLUTIONS Delivering Essential Building Solutions to Create Better Spaces Broad Array of Essential Building Solutions Market Leading Positions • Well-Know Brands Reputation for Innovation • Voice of customer • Labor savings • Technology 39
Slide 40: Delivering Essential Building Solutions to Create Better Spaces
BUILDING PRODUCTS I PORTFOLIO OF ESSENTIAL BUILDING SOLUTIONS Delivering Essential Building Solutions to Create Better Spaces Broad Array of Essential Building Solutions Market Leading Positions • Well-Know Brands Reputation for Innovation • Voice of customer • Labor savings • Technology 40
Slide 41: Delivering Essential Building Solutions to Create Better Spaces
BUILDING PRODUCTS I PORTFOLIO OF ESSENTIAL BUILDING SOLUTIONS Delivering Essential Building Solutions to Create Better Spaces Broad Array of Essential Building Solutions Market Leading Positions • Well-Know Brands Reputation for Innovation • Voice of customer • Labor savings • Technology 41
Slide 42: Making Our Products Smarter: SmartLid Monitoring Solution
BUILDING PRODUCTS I INNOVATION Making our products “smarter” to enable our customers to operate more efficiently – reducing emissions SmartLid Monitoring Solution • Collaborated with Otodata, industry leader in remote monitoring, to develop and launch lid with gas level monitor housed underneath a p
Slide 43: WAVE
Doug Cadle WAVE 43
Slide 44: WAVE – Bringing Together the Best of Both
BUILDING PRODUCTS I WAVE – BRINGING TOGETHER THE BEST OF BOTH • Established in 1955 • Established in 1860 • $3.2 billion sales in fiscal 2021 • Established in 1992 • $937 million in sales 2020 • 53 facilities in 7 countries • 29-year-old 50/50 JV leveraging the strength of both partners • 15 plants
Slide 45: WAVE: Winning Formula
BUILDING PRODUCTS I WAVE: WINNING FORMULA WAVE has a consistent track record of delivering earnings growth through innovating to make the jobs of their customers easier Net Sales ($M) $382 $391 $398 $320 $289 High margin 2005 2010 2015 2020 08/31/21 TTM business Contribution to WI Equity Income ($M)
Slide 46: WAVE: How We Win – Customer Focus
BUILDING PRODUCTS I WAVE: HOW WE WIN – CUSTOMER FOCUS Demand Architects & General Interior Distributors Owners Creation Designers Contractors Contractors Providing creative solutions to customers to address their need for speed and lower their total cost Pre-Engineered Integrated Time + Labor Health
Slide 47: The Faster. Easier. Better Way to Build Soffits
WAVE | DRYWALL CEILING FRAMING What we did: Notched drywall grid main beam that SIMPLE SOFFIT TM provides quick, click and go installation technology to create precise soffit for every project. What we Achieved: Opportunity: • Simpler handling means less on-site material, • Average 20% of building s
Slide 48: WAVE: How We Win – Customized Solutions
BUILDING PRODUCTS I WAVE: HOW WE WIN – CUSTOMIZED SOLUTIONS Providing creative solutions to customers to address their need for speed and lower their total cost Dimensional Connected Painting & Flexibility Manufacturing Coatings Expertise Growing demand for Digitalized controls for Aligning with cha
Slide 49: Building Products: WAVE
BUILDING PRODUCTS I WAVE 49
Slide 50: Poised for Future Growth
BUILDING PRODUCTS I POISED FOR FUTURE GROWTH Delivering Essential Building Solutions to Create Better Spaces Building Upon Market Leading Positions Focused M&A Cultivation Driving Innovation 50
Slide 51: Sustainable Energy Solutions
Timo Snoeren Sustainable Energy Solutions 51
Slide 52: The Bankable Sustainable Mobility Solutions Partner
SUSTAINABLE ENERGY SOLUTIONS I THE BANKABLE SUSTAINABLE MOBILITY SOLUTIONS PARTNER SEGMENT HIGHLIGHTS > $800B Global hydrogen market potential (2050) $3.4B Type 1 Type 2 Type 3 Type 4 All steel Fiberglass Carbon Carbon full wrap CNG / RNG / H2 tank market size (2025) hoop wrap full wrap plastic line
Slide 53: Sustainable Energy Solutions: Competitive Positioning
SUSTAINABLE ENERGY SOLUTIONS I COMPETITIVE POSITIONING Well positioned in the Hydrogen / CNG ecosystem with a full line of pressure vessel storage and transport solutions ranging from T1 to T4 giving our customers a range of options depending on their requirements. Applications Main competitive adva
Slide 54: Mega Trends + Market Drivers
SUSTAINABLE ENERGY SOLUTIONS I MEGA TRENDS + MARKET DRIVERS from 2026 65% of busses & 15% of trucks must be clean CO2 reduction for new buses & trucks: 15% from 2025 228 live global 30% from 2030CO2 reduction for new cars: hydrogen projects (126 in Europe) 15% by 2025 37.5% by 2030 $300B in investme
Slide 55: Positioned Today for Tomorrow
SUSTAINABLE ENERGY SOLUTIONS I POSITIONED TODAY FOR TOMORROW From clean to cleaner: CNG began the clean Hydrogen can store energy transition that will energy produced by leverage hydrogen for renewable sources Hydrogen can 24/7 – avoiding “use it the long term decarbonize resistant or lose it” scena
Slide 56: Key Wins
SUSTAINABLE ENERGY SOLUTIONS I KEY WINS Heavy Duty Vehicles • Solid track record with IVECO for Type-3 onboard CNG fueling systems • Belgian bus maker Van Hool’s supplier for Type-3 onboard H2 fueling systems with PTEC components • South America customer place first order for Type-4 behind-cab heavy
Slide 57: Global Strategy / Local Implementation – Blue Danube
SUSTAINABLE ENERGY SOLUTIONS I GLOBAL STRATEGY / LOCAL IMPLEMENTATION – BLUE DANUBE Important Projects of Common European Interest (IPCEI) – Blue Danube Hydrogen produced via wind and LOHC hydrogenation in SE Europe will be OUR CONTRIBUTION transported along the Danube via conventional tanker ships.
Slide 58: Steel Processing
Jeff Klingler Steel Processing 58
Slide 59: Steel Processing Segment
STEEL PROCESSING I SEGMENT ($ Millions) High value-add steel processing • Broad range of metal products in sheet, coil and strip configurations as well as processing Net Sales capabilities including cold reduction, specialty coatings, annealing, pickling, slitting and blanking $2,059 Laser welding s
Slide 60: Value Added Partner to Customers
STEEL PROCESSING I VALUE ADDED PARTNER TO CUSTOMERS Focused on reducing risks for our customers to help make their businesses stronger • Our Engineering staff offers materials support and innovation with knowledge experts on new steel technologies, grades and testing so customers get the best produc
Slide 61: Automotive Industry Outlook
STEEL PROCESSING I AUTOMOTIVE INDUSTRY OUTLOOK Auto builds expected to rise to average of 16.7 million through 2028 Auto sales expected to continue at pre- US, Mexico, Canada Light Vehicle Sales & Builds COVID levels through 2023 (Million Units) ‒ A portion of 2020 pent-up demand 20 spills into 2022
Slide 62: Positioned to Support Auto Production Trends
STEEL PROCESSING I POSITIONED TO SUPPORT AUTO PRODUCTION TRENDS Global transition to electric and hybrid vehicles is accelerating and should create additional opportunities PROJECTED VEHICLE PRODUCTION BY PROPULSION SYSTEM – 2021 VS. 2030 CY 2021 CY 2030 6% 14% 22% 52% 34% 72% CY 2021 CY 2030 CY 202
Slide 63: Shiloh U.S. BlankLight Acquisition
STEEL PROCESSING I SHILOH U.S. BLANKLIGHT ACQUISITION Complements our laser welding joint-venture, TWB, by adding new capabilities to support the growing demand for tailor welded blanks and light weighting technology BlankLight is at the forefront of aluminum tailored blanks and an industry leader i
Slide 64: Becoming a Global Leader in the Electrical Steel Market
BECOMING A GLOBAL LEADER IN THE ELECTRICAL STEEL MARKET Tempel expands our product offerings adding highly engineered, precision-stamped, electrical steel laminations. The acquisition will immediately make us a market leader in the rapidly growing electrical steel market that includes transformers,
Slide 65: Demand for Electric Motors and Transformers Will Grow Significantly
AS THE WORLD TRANSITIONS TO RENEWABLE ENERGY AND ELECTRIC VEHICLES, DEMAND FOR ELECTRIC MOTORS AND TRANSFORMERS WILL GROW SIGNIFICANTLY Focus on Decarbonization Aging Infrastructure Worldwide Transition to and Renewable Energy Worldwide Electric Vehicles Aging infrastructure will require Technologic
Slide 66: Tempel Serves Diverse and Attractive End-Markets
TEMPEL SERVES DIVERSE AND ATTRACTIVE END-MARKETS WHICH ARE PROJECTED TO GROW FASTER THAN GDP Net Sales by End-Market (CY 2020) Projected Global Growth Through 2025 Est. 11% End-market CAGR Trends driving growth Automotive motors 26-27% -Growing global production of electrical (EV traction motors) ve
Slide 67: Tempel's Global Footprint Allows It to Serve Customers Worldwide
TEMPEL’S GLOBAL FOOTPRINT ALLOWS IT TO SERVE CUSTOMERS WORLDWIDE Global Operations Europe • Global manufacturing capabilities allow Tempel Burlington, Ontario to partner with its customers worldwide and adjust to changing production needs Manufacturing Locations Buena Park, CA Levittown, PA Changzho
Slide 68: Financial
yr LA Joe Hayek Financial
Slide 69: Financial Goals
FINANCIAL GOALS • INCREASE MARGINS / DECREASE ASSET INTENSITY • REDUCE EARNINGS VOLATILITY • MODEST LEVERAGE / AMPLE LIQUIDITY (INVESTMENT GRADE) • BALANCED CAPITAL ALLOCATION • RIGOROUS CAPITAL DISCIPLINE 69 69
Slide 70: Earnings Leverage as Consumer Products & Building Products Grow
EARNINGS LEVERAGE AS CONSUMER PRODUCTS & BUILDING PRODUCTS GROW Adjusted EBITDA* ($ millions) Excluding Inventory gains/losses 13.3% 12.9% 10.6% 8.9% 10.5% $475 $379 $409 $334 $321 FY '18 FY '19 FY '20 FY '21 TTM 08/31/21 *Adjusted for restructuring and non-recurring items and excludes the impact of
Slide 71: Earnings Leverage as Consumer Products & Building Products Grow
EARNINGS LEVERAGE AS CONSUMER PRODUCTS & BUILDING PRODUCTS GROW 40.0% Adjusted EBITDA Margin % 37.1% Excluding Inventory gains/losses 35.0% 33.2% 30.0% 31.8% 25.0% 20.0% 17.8% 16.3% 16.9% 16.7% 15.0% 15.7% 10.0% 8.6% 8.8% 8.7% 8.5% 5.0% 7.5% 7.4% 5.5% 5.4% 0.0% FY '18 FY '19 FY '20 FY '21 TTM 08/31/
Slide 72: Solid Free Cash Flow
SOLID FREE CASH FLOW WHICH WILL BENEFIT W H E N W O R K I N G C A P I TA L L E V E L S N O R M A L I Z E Free Cash Flow ($ millions) $358 $241 $212 $183 $171 FY '18 FY '19 FY '20 FY '21 TTM 08/31/21 Free Cash Flow (Adjusted for Working Capital) Unadjusted Free Cash Flow Net PPE & Operating Working C
Slide 73: Strong Capital Structure & Liquidity
S T R O N G C A P I TA L S T R U C T U R E & L I Q U I D I T Y Strong balance sheet with investment grade credit ratings and significant liquidity available enables financial flexibility to support strategy and shareholder returns Corporate credit ratings: BBB / Baa3 600 500 $500 400 $ Millions 300
Slide 74: Balanced Capital Allocation Strategy
BALANCED CAPITAL ALLOCATION STRATEGY Strong cash flows and significant liquidity support balanced approach to capital allocation focused on growth and rewarding shareholders OVER $3 BILLION OF CAPITAL DEPLOYED IN PAST 10 YEARS SINCE START OF FY2012 ✓ Reinvest in the business to create value and ($ m
Slide 75: Recent Transactions
RECENT TRANSACTIONS that will improve financial performance and strengthen liquidity Divested Acquired Engineered Cabs General Tools & Instruments for $115 Nov. 2019 million Jan. 2021 North American Cryogenic Oct. 2020 PTEC Pressure Technology, German valve Oil & Gas Equipment and components, for $1
Slide 76: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Worthington offers an attractive investment opportunity balancing growth and rewarding shareholders • Business segments aligned around diverse and attractive end-markets with market leading positions • Actively pursuing growth through innovation, transformation, and acquisi
Slide 77: Supplemental Data
Supplemental Data 77
Slide 78: Consolidated Financial Results
C O N S O L I D AT E D F I N A N C I A L R E S U LT S $ millions, except EPS FY2019 FY2020 FY2021 3M FY 2021 3M FY 2022 Sales $3,760 $3,059 $3,171 $703 $1,111 Adj. EBIT* $234 $208 $396 $53 $174 % of sales 6.2% 6.8% 12.5% 7.5% 15.7% Adj. EBITDA* $330 $300 $483 $75 $196 % of sales 8.8% 9.8% 15.2% 10.7
Slide 79: Consumer Products Financials
CONSUMER PRODUCTS FINANCIALS $ millions FY2020 FY2021 3M FY2021 3M FY2022 Sales $449 $524 $134 $148 Adj. EBIT* $65 $75 $24 $21 % of sales* 14.6% 14.3% 17.9% 13.9% Adj. EBITDA* $76 $87 $27 $24 % of sales* 16.9% 16.7% 20.0% 16.1% Capital Expenditures $8 $13 $2 $4 Avg Invested Capital $295 $387 $302 $5
Slide 80: Building Products Financials
BUILDING PRODUCTS FINANCIALS $ millions FY2020 FY2021 3M FY2021 3M FY2022 Sales $383 $402 $88 $115 Adj. EBIT* $105 $118 $23 $49 % of sales* 27.3% 29.3% 26.5% 42.5% Adj. EBITDA* $122 $133 $27 $53 % of sales* 31.8% 33.2% 30.8% 45.8% Capital Expenditures $18 $23 $4 $8 Avg Invested Capital $207 $258 $19
Slide 81: Sustainable Energy Solutions Financials
SUSTAINABLE ENERGY SOLUTIONS FINANCIALS $ millions FY2020 FY2021 3M FY2021 3M FY2022 Sales $122 $135 $28 $25 Adj. EBIT* $5 $5 ($1) ($3) % of sales* 4.1% 3.7% -2.0% -10.0% Adj. EBITDA* $11 $12 $1 ($1) % of sales* 8.7% 8.6% 3.3% -3.9% Capital Expenditures $14 $9 $4 $1 Avg Invested Capital $78 $87 $83
Slide 82: Steel Processing Financials
STEEL PROCESSING FINANCIALS $ millions FY2020 FY2021 3M FY2021 3M FY2022 Sales $1,860 $2,059 $431 $823 Adj. EBIT* $40 $208 $14 $108 % of sales* 2.1% 10.1% 3.3% 13.1% Adj. EBITDA* $81 $249 $25 $119 % of sales* 4.3% 12.1% 5.7% 14.5% Capital Expenditures $41 $28 $15 $8 Avg Invested Capital $591 $613 $6
Slide 83: Adjusted EBITDA / Free Cash Flow
ADJUSTED EBITDA / FREE CASH FLOW SUPPLEMENTAL DATA FY18 FY19 FY20 FY21 FY21 FY22 TTM Annual Annual Annual Annual 3M 3M 8/31/2021 Net Income $ 194.8 $ 153.5 $ 78.8 $ 723.8 $ 616.7 $ 132.5 $ 239.6 Interest Expense 38.7 38.1 31.6 30.3 7.6 7.7 30.5 Taxes 8.2 43.2 26.3 176.3 163.8 40.2 52.6 EBIT $ 241.7
Slide 84: Consolidated Adjusted EPS
C O N S O L I D AT E D A D J U S T E D E P S SUPPLEMENTAL DATA $ millions, except EPS FY2019 FY2020 FY2021 3M FY2021 3M FY2022 EPS $2.61 $1.41 $13.42 $11.22 $2.55 Restructuring and non-recurring (excluding Nikola)* (0.01) 0.98 1.84 0.88 (0.09) Impact of Nikola Investment - - (10.02) (11.46) - EPS Ad
Slide 85: Reconciliation of Adjusted EBIT & EBITDA - FY21
R E C O N C I L I AT I O N O F A D J U S T E D E B I T & E B I T D A - F Y 2 1 SUPPLEMENTAL DATA $ Millions (except volume) Fiscal Year Ended May 31, 2021 Sustainable Steel Consumer Building Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 4,066,773 74,656,594 11,
Slide 86: Reconciliation of Adjusted EBIT & EBITDA - FY20
R E C O N C I L I AT I O N O F A D J U S T E D E B I T & E B I T D A - F Y 2 0 SUPPLEMENTAL DATA $ Millions (except volume) Fiscal Year ended May 31, 2020 Sustainable Steel Consumer Building Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 3,830,675 70,710,740 10,
Slide 87: Reconciliation of Adjusted EBIT & EBITDA - FY22 Q1
R E C O N C I L I AT I O N O F A D J U S T E D E B I T & E B I T D A – F Y 2 2 Q 1 SUPPLEMENTAL DATA $ Millions (except volume) Three Months Ended August 31, 2021 Sustainable Steel Consumer Building Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 1,062,288 21,388
Slide 88: Reconciliation of Adjusted EBIT & EBITDA - FY21 Q1
R E C O N C I L I AT I O N O F A D J U S T E D E B I T & E B I T D A – F Y 2 1 Q 1 SUPPLEMENTAL DATA $ Millions (except volume) Three Months Ended August 31, 2020 Sustainable Steel Consumer Building Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 928,444 18,820,5
Slide 89: Makers of Better
® MAKERS OF BETTER 89
Worthington Enterprises — Investor Day (November 2021) on 6ix