Enersys · NYSE:ENS
Enersys — Q4 2022 Earnings Presentation
34 slides from Enersys's earnings presentation, May 25, 2022
Slide 1: Q4'22 and FY'22 Financial Results
Q4’22 and FY’22 Financial Results M AY 2 5 , 2 0 2 2 May 2022 © 2022 EnerSys. All Rights Reserved. 1
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: Business Update
Business Update D AV I D S H A F F E R , C H I E F E X E C U T I V E O F F I C E R May 2022 © 2022 EnerSys. All Rights Reserved. 3
Slide 4: 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 $1.3B on robust market demand across all business segments Adj. Operating • Q4’22 price outpaced cost, driving seq
Slide 5: Business Segment Performance
Business Segment Performance FISCAL YEAR 2022 Net Sales Adj. Op Margin Segment Overview ($ millions) • $740M record backlog Energy Systems $1,537 3.1% • Pricing actions gaining traction Q4’22 +11% y/y -360 bps y/y • Infrastructure spending / network upgrades fueling growth • Fast Charge and Storage
Slide 6: Technology Advancements
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 May 2022 © 2022 EnerSys. All
Slide 7: 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 8: 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 9: Finance Update
Finance Update ANDI FUNK, CHIEF FINANCIAL OFFICER May 2022 © 2022 EnerSys. All Rights Reserved.
Slide 10: 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 $97
Slide 11: Q4'22 Segment Financial Highlights
Q4’22 Segment Financial Highlights Sales Segment Adj Segment Highlights ($ 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 12: 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 13: Adj EPS Bridge
Adj EPS Bridge Q4’22 SEQUENTIAL AND FULL YEAR Note: See appendix for non-GAAP reconciliation $M USD AA May 2022 © 2022 EnerSys. All Rights Reserved. 13
Slide 14: Record Backlog Drives Long-Term Growth
Record Backlog Drives Long-Term Growth ORDER GROWTH & MACRO CONDITIONS DRIVING RECORD BACKLOG ($ 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 15: 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 16: 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 $100M AOE • MP Maint Free • Trans
Slide 17: Appendix
Appendix May 2022 © 2022 EnerSys. All Rights Reserved. 17
Slide 18: Q4'22 Results
Q4’22 Results ($ millions) Q4 F'21 Q3 F'22 Q4 F'22 NET SALES $813.5 $844.0 $907.0 GROSS PROFIT 197.3 (24%) $184.3 (22%) $196.2 (22%) Adj. OP EARNINGS $ $78.4 $60.4 $66.8 Adj. OP EARNINGS % 9.6% 7.2% 7.4% Adj. EPS $1.30 $1.01 $1.20 See appendix for non-GAAP reconciliation May 2022 © 2022 EnerSys. All
Slide 19: Q4'22 Net Sales by Segment & Region, Q/Q
Q4’22 Net Sales by Segment & Region, Q/Q ($ millions) Fav/(Unfav) Q3'22 Q4'22 $ % Energy Systems $385 $410 $25 7% Motive Power $340 $365 $25 7% Specialty $119 $132 $12 10% Total Net Sales $844 $907 $63 7% 6% Organic, 2% Price, 0% Acquisitions, -1% Fx Fav/(Unfav) Q3'22 Q4'22 $ % Americas $578 $643 $6
Slide 20: Q4'22 Net Sales by Segment & Region, Y/Y
Q4’22 Net Sales by Segment & Region, Y/Y ($ millions) Fav/(Unfav) Q4'21 Q4'22 $ % Volume Price M&A Fx Energy Systems $349 $410 $62 18% 13% 6% - -2% Motive Power $333 $365 $32 10% 6% 6% - -3% Specialty $132 $132 ($0) 0% -2% 3% - -1% Total Net Sales $814 $907 $93 11% 8% 6% - -2% Fav/(Unfav) Q4'21 Q4'2
Slide 21: FY'22 Net Sales by Segment & Region
FY’22 Net Sales by Segment & Region ($ millions) Fav/(Unfav) FY'21 FY'22 $ % Volume Price M&A Fx Energy Systems $1,380 $1,537 $156 11% 10% 1% - - Motive Power $1,164 $1,361 $197 17% 14% 3% - - Specialty $434 $459 $25 6% 2% 4% - - Total Net Sales $2,978 $3,357 $379 13% 10% 3% - - Fav/(Unfav) FY'21 FY
Slide 22: Q4'22 Adj Operating Earnings by Segment
Q4’22 Adj Operating Earnings by Segment ($ millions) Fav/(Unfav) Year Over Year Q4'21 Q4'22 $ % Operating Earnings Energy Systems $9.1 $15.9 $6.8 74% 2.6% 3.9% Motive Power 51.9 40.1 ($11.8) -23% 15.6% 11.0% Specialty 17.4 10.8 ($6.6) -38% 13.2% 8.2% Total Operating Earnings $78.4 $66.8 ($11.6) -15%
Slide 23: Q4'22 Adj Net Earnings & EPS
Q4’22 Adj Net Earnings & EPS ($ millions, except per share amounts) Fav/(Unfav) Q4'21 Q4'22 $ % Operating Earnings $78.4 $66.8 ($11.6) -15% As % Net Sales 9.6% 7.4% (2.2)Pts. Book Tax Rate 19% 18% Net Earnings $56.5 $50.1 ($6.4) -11% As % Net Sales 6.9% 5.5% (1.4)Pts. EPS diluted $1.30 $1.20 ($0.10)
Slide 24: FY'22 Adj Net Earnings & EPS
FY’22 Adj Net Earnings & EPS ($ millions, except per share amounts) Fav/(Unfav) FY'21 FY'22 $ % Operating Earnings $284.2 $263.6 ($20.6) -7% As % Net Sales 9.5% 7.9% (1.6)Pts. Book Tax Rate 18% 17% Net Earnings $194.1 $191.0 ($3.1) -2% As % Net Sales 6.5% 5.7% (0.8)Pts. EPS diluted $4.49 $4.47 ($0.0
Slide 25: Balance Sheet & Other Highlights
Balance Sheet & Other Highlights ($ millions) Fiscal Year Fiscal Year 2021 2022 Cash & Cash Equivalents $451.8 $402.5 Net Debt (Gross Debt − Investments) $684.3 $1,018.1 Net Cash from Operations $358.4 ($65.6) Capital Expenditures $70.0 $74.0 Leverage Ratio (per US Credit Agreement) 1.7X 2.5X Primar
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation May 2022 © 2022 EnerSys. All Rights Reserved. 26
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation May 2022 © 2022 EnerSys. All Rights Reserved. 27
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation May 2022 © 2022 EnerSys. All Rights Reserved. 28
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation May 2022 © 2022 EnerSys. All Rights Reserved. 29
Slide 30: 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 May 2022 © 2022 EnerSys. All Rights Reserved. 30
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation May 2022 © 2022 EnerSys. All Rights Reserved. 31
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation May 2022 © 2022 EnerSys. All Rights Reserved. 32
Slide 33: 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 34: 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